HSBC vs Yes Bank Which Is More Lucrative?

HSBC and Yes Bank are two prominent banking institutions that have garnered the attention of investors worldwide. These two stocks have shown contrasting performances in the market, with HSBC being a well-established and globally recognized brand, while Yes Bank is a newer and more aggressive player in the industry. Investors have been closely monitoring the stock prices of both companies, as they navigate through economic challenges and regulatory changes. In this analysis, we will delve into the performance of HSBC and Yes Bank stocks, evaluating their financial standing and growth potential.

HSBC or Yes Bank?

When comparing HSBC 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 HSBC 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. HSBC has a dividend yield of 8.4%, while Yes Bank has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. HSBC reports a 5-year dividend growth of 0.62% 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 HSBC P/E ratio at 7.48 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. HSBC P/B ratio is 0.92 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, HSBC has seen a 5-year revenue growth of -0.10%, while Yes Bank's is -0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HSBC's ROE at 12.87% 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 $48.29 for HSBC and ₹20.70 for Yes Bank. Over the past year, HSBC's prices ranged from $36.93 to $48.76, with a yearly change of 32.02%. 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.