CRISIL vs ICRA Which Offers More Value?

CRISIL and ICRA are two leading credit rating agencies in India, providing independent credit ratings and research services to investors and companies. Both companies play a crucial role in the financial markets by assessing the creditworthiness of entities and helping investors make informed decisions. While CRISIL is owned by Standard & Poor's Global, ICRA is a subsidiary of Moody's Investors Service. Investors often compare and analyze the performance of CRISIL and ICRA stocks to gauge the health of the financial sector.

CRISIL or ICRA?

When comparing CRISIL and ICRA, 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 CRISIL and ICRA.

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. CRISIL has a dividend yield of 1.0%, while ICRA has a dividend yield of 0.6%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CRISIL reports a 5-year dividend growth of 11.06% year and a payout ratio of 0.00%. On the other hand, ICRA reports a 5-year dividend growth of 24.57% 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 CRISIL P/E ratio at 63.54 and ICRA's P/E ratio at 42.12. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CRISIL P/B ratio is 18.93 while ICRA's P/B ratio is 6.68.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CRISIL has seen a 5-year revenue growth of 0.77%, while ICRA's is 0.39%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CRISIL's ROE at 31.32% and ICRA's ROE at 15.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹5504.40 for CRISIL and ₹6525.30 for ICRA. Over the past year, CRISIL's prices ranged from ₹3660.70 to ₹5896.75, with a yearly change of 61.08%. ICRA's prices fluctuated between ₹4983.40 and ₹7735.40, with a yearly change of 55.22%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.