First Bank vs SBI Which Is More Profitable?

First Bank and State Bank of India (SBI) are two prominent banking institutions in the financial market. First Bank, known for its customer-centric approach and innovative services, has gained popularity among investors. On the other hand, SBI, one of the largest public sector banks in India, is renowned for its widespread network and strong financial performance. Investors often compare the stocks of these two banks to make informed investment decisions based on factors like profitability, growth potential, and market positioning.

First Bank or SBI?

When comparing First Bank and SBI, 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 SBI.

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 SBI has a dividend yield of 4.03%. 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, SBI reports a 5-year dividend growth of -44.26% year and a payout ratio of 56.44%.

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 SBI's P/E ratio at 14.70. 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 SBI's P/B ratio is 0.98.

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 SBI's is 1.88%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with First Bank's ROE at 10.37% and SBI's ROE at 7.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $14.56 for First Bank and $26.50 for SBI. Over the past year, First Bank's prices ranged from $11.20 to $15.87, with a yearly change of 41.70%. SBI's prices fluctuated between $19.00 and $27.02, with a yearly change of 42.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.