Engineers India vs Indian Bank Which Performs Better?

Engineers India Limited (EIL) and Indian Bank are two well-known corporations in India's financial market. EIL, a leading engineering consultancy firm, specializes in the energy, chemicals, and infrastructure sectors. On the other hand, Indian Bank is a renowned public sector bank offering a wide range of financial services to its customers. Both stocks have shown promising growth potential in recent years, attracting investors looking to diversify their portfolios in the dynamic Indian market.

Engineers India or Indian Bank?

When comparing Engineers India and Indian 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 Engineers India and Indian 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. Engineers India has a dividend yield of 1.49%, while Indian Bank has a dividend yield of 2.09%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Engineers India reports a 5-year dividend growth of -5.59% year and a payout ratio of 0.00%. On the other hand, Indian 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 Engineers India P/E ratio at 30.70 and Indian Bank's P/E ratio at 7.81. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Engineers India P/B ratio is 4.77 while Indian Bank's P/B ratio is 1.16.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Engineers India has seen a 5-year revenue growth of 0.33%, while Indian Bank's is 1.58%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Engineers India's ROE at 16.52% and Indian Bank's ROE at 16.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹198.00 for Engineers India and ₹558.05 for Indian Bank. Over the past year, Engineers India's prices ranged from ₹147.40 to ₹303.90, with a yearly change of 106.17%. Indian Bank's prices fluctuated between ₹391.00 and ₹632.70, with a yearly change of 61.82%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.