Canara Bank vs Yes Bank Which Performs Better?

Canara Bank and Yes Bank are two leading banks in the Indian financial sector with distinct operational and financial profiles. Canara Bank, a public sector bank, has a strong presence across the country and a robust performance history. On the other hand, Yes Bank, a private sector bank, has faced significant challenges in recent years due to deteriorating asset quality and governance issues. Investors looking to invest in banking stocks should carefully evaluate the strengths and weaknesses of both Canara Bank and Yes Bank.

Canara Bank or Yes Bank?

When comparing Canara Bank and Yes 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 Yes 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 3.02%, while Yes Bank has a dividend yield of -%. 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, Yes 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 6.04 and Yes Bank's P/E ratio at 37.04. 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 0.94 while Yes Bank's P/B ratio is 1.43.

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 Yes Bank's is -0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canara Bank's ROE at 16.75% and Yes Bank's ROE at 4.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹104.00 for Canara Bank and ₹20.70 for Yes Bank. Over the past year, Canara Bank's prices ranged from ₹82.69 to ₹128.90, with a yearly change of 55.88%. Yes Bank's prices fluctuated between ₹19.02 and ₹32.85, with a yearly change of 72.71%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.