Central Bank of India vs Bank of India Which Is More Attractive?

Central Bank of India and Bank of India are two major public sector banks in India. Both have a rich history and a significant presence in the banking sector. Investors often compare the stocks of these two banks to make investment decisions. Central Bank of India has been facing challenges in terms of profitability and asset quality, while Bank of India has shown more stable financial performance. Understanding the differences between the two banks can help investors make informed decisions about their investment portfolio.

Central Bank of India or Bank of India?

When comparing Central Bank of India and Bank of India, 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 Central Bank of India and Bank of India.

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. Central Bank of India has a dividend yield of -%, while Bank of India has a dividend yield of 2.5%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Central Bank of India reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Bank of India 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 Central Bank of India P/E ratio at 14.20 and Bank of India's P/E ratio at 7.41. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Central Bank of India P/B ratio is 1.45 while Bank of India's P/B ratio is 0.72.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Central Bank of India has seen a 5-year revenue growth of 2.85%, while Bank of India's is 1.96%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Central Bank of India's ROE at 10.57% and Bank of India's ROE at 10.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹54.95 for Central Bank of India and ₹111.03 for Bank of India. Over the past year, Central Bank of India's prices ranged from ₹43.60 to ₹76.90, with a yearly change of 76.38%. Bank of India's prices fluctuated between ₹96.00 and ₹157.95, with a yearly change of 64.53%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.