Federal Bank vs Yes Bank Which Is Superior?

Federal Bank and Yes Bank are two of the prominent banking institutions in India, both listed on the stock exchange. Federal Bank has been a stable and profitable player in the market, with a strong presence and consistent growth over the years. Yes Bank, on the other hand, has faced challenges in recent times with issues related to governance and financial stability. Investors are closely monitoring the performance of these two banks to make informed decisions on their stock investments.

Federal Bank or Yes Bank?

When comparing Federal 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 Federal 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. Federal Bank has a dividend yield of 0.56%, while Yes Bank has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Federal Bank reports a 5-year dividend growth of 2.13% 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 Federal Bank P/E ratio at 12.63 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. Federal Bank P/B ratio is 1.60 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, Federal Bank has seen a 5-year revenue growth of 0.83%, while Yes Bank's is -0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Federal Bank's ROE at 13.68% 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 ₹209.70 for Federal Bank and ₹20.70 for Yes Bank. Over the past year, Federal Bank's prices ranged from ₹139.40 to ₹217.00, with a yearly change of 55.67%. 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.