Canara Bank vs Punjab National Bank

Canara Bank and Punjab National Bank are two of the largest public sector banks in India, both listed on the stock market. Investors often compare the performance of their stocks to make informed investment decisions. Canara Bank has a strong presence in the southern part of India, while Punjab National Bank operates primarily in the northern region. Both banks have faced challenges in recent years, including non-performing assets and regulatory issues. Investors should carefully analyze their financial health and growth prospects before investing in their stocks.

Canara Bank or Punjab National Bank?

When comparing Canara Bank and Punjab National Bank, 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 Punjab National Bank.

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 3.08%, while Punjab National Bank has a dividend yield of 1.43%. 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, Punjab National Bank 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 6.08 and Punjab National Bank's P/E ratio at 9.85. 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 0.97 while Punjab National Bank's P/B ratio is 0.99.

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 2.09%, while Punjab National Bank's is 0.86%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canara Bank's ROE at 17.10% and Punjab National Bank's ROE at 10.63%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹104.00 for Canara Bank and ₹104.50 for Punjab National Bank. Over the past year, Canara Bank's prices ranged from ₹68.42 to ₹128.90, with a yearly change of 88.40%. Punjab National Bank's prices fluctuated between ₹67.35 and ₹142.90, with a yearly change of 112.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.