First Bank vs Yes Bank Which Should You Buy?

First Bank and Yes Bank are two prominent players in the Indian banking sector, both listed on the stock exchange. First Bank, known for its stability and consistent performance, has a strong market presence and a loyal customer base. On the other hand, Yes Bank has faced some challenges in recent years, including management issues and financial instability. Investors are closely monitoring the performance of both stocks to determine the best investment opportunities in the dynamic banking industry.

First Bank or Yes Bank?

When comparing First 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 First 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. First Bank has a dividend yield of 1.61%, while Yes Bank has a dividend yield of -%. 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, 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 First Bank P/E ratio at 9.34 and Yes Bank's P/E ratio at 37.93. 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 0.93 while Yes Bank's P/B ratio is 1.46.

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 Yes Bank's is -0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with First Bank's ROE at 10.37% 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 $14.57 for First Bank and ₹21.36 for Yes Bank. Over the past year, First Bank's prices ranged from $11.20 to $15.87, with a yearly change of 41.70%. 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.