Canara Bank vs IDFC Which Is More Lucrative?

Canara Bank and IDFC are two prominent players in the Indian banking sector, each with its own unique characteristics and market performance. Canara Bank, established in 1906, is one of the oldest and most trusted banks in India, known for its strong presence in rural areas and focus on financial inclusion. On the other hand, IDFC, founded in 1997, is a newer player in the market, known for its innovative approach to banking and focus on infrastructure financing. Both stocks have their own strengths and weaknesses, making them interesting options for investors looking to diversify their portfolios.

Canara Bank or IDFC?

When comparing Canara Bank and IDFC, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Canara Bank and IDFC.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Canara Bank has a dividend yield of 3.3%, while IDFC has a dividend yield of 0.92%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Canara Bank reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, IDFC reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Canara Bank P/E ratio at 5.52 and IDFC's P/E ratio at 19.93. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Canara Bank P/B ratio is 0.86 while IDFC's P/B ratio is 1.29.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Canara Bank has seen a 5-year revenue growth of 1.64%, while IDFC's is -0.85%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canara Bank's ROE at 16.75% and IDFC's ROE at 8.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹97.22 for Canara Bank and ₹107.36 for IDFC. Over the past year, Canara Bank's prices ranged from ₹77.80 to ₹128.90, with a yearly change of 65.68%. IDFC's prices fluctuated between ₹104.50 and ₹129.70, with a yearly change of 24.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.