First Bank vs Axis Bank Which Is More Reliable?

First Bank and Axis Bank are two major players in the banking sector in India. Both banks have a strong presence in the market and offer a wide range of financial services to their customers. Investors often compare the performance of these two banks to make informed decisions about their investments. First Bank has a long-standing reputation for stability and reliability, while Axis Bank is known for its innovative approach and aggressive growth strategy. Understanding the key differences between these two stocks can help investors make smart choices in their portfolios.

First Bank or Axis Bank?

When comparing First Bank and Axis 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 First Bank and Axis 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. First Bank has a dividend yield of 1.64%, while Axis Bank has a dividend yield of 0.0%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. First Bank reports a 5-year dividend growth of 14.87% year and a payout ratio of 14.99%. On the other hand, Axis 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 First Bank P/E ratio at 9.17 and Axis Bank's P/E ratio at 12.66. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. First Bank P/B ratio is 0.92 while Axis Bank's P/B ratio is 2.05.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, First Bank has seen a 5-year revenue growth of 0.36%, while Axis Bank's is -0.69%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with First Bank's ROE at 10.37% and Axis Bank's ROE at 17.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $14.56 for First Bank and $67.00 for Axis Bank. Over the past year, First Bank's prices ranged from $11.20 to $15.87, with a yearly change of 41.70%. Axis Bank's prices fluctuated between $56.40 and $80.00, with a yearly change of 41.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.