CARE Ratings vs CRISIL Which Is More Promising?

CARE Ratings and CRISIL are two of the leading credit rating agencies in India, providing investors and companies with valuable insights into the creditworthiness and financial health of various entities. Both companies play a crucial role in the financial markets by assessing the risk associated with investments and providing independent opinions on the credit quality of debt instruments. Understanding the differences and similarities between CARE Ratings and CRISIL stocks can help investors make informed decisions when choosing where to invest their money.

CARE Ratings or CRISIL?

When comparing CARE Ratings and CRISIL, 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 CARE Ratings and CRISIL.

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. CARE Ratings has a dividend yield of 1.26%, while CRISIL has a dividend yield of 1.07%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CARE Ratings reports a 5-year dividend growth of -10.28% year and a payout ratio of 0.00%. On the other hand, CRISIL reports a 5-year dividend growth of 11.06% 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 CARE Ratings P/E ratio at 37.43 and CRISIL's P/E ratio at 59.21. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CARE Ratings P/B ratio is 5.68 while CRISIL's P/B ratio is 17.64.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CARE Ratings has seen a 5-year revenue growth of 0.03%, while CRISIL's is 0.77%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CARE Ratings's ROE at 15.84% and CRISIL's ROE at 31.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1356.60 for CARE Ratings and ₹5263.65 for CRISIL. Over the past year, CARE Ratings's prices ranged from ₹891.00 to ₹1571.00, with a yearly change of 76.32%. CRISIL's prices fluctuated between ₹3660.70 and ₹5685.00, with a yearly change of 55.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.