ICRA vs CRISIL Which Offers More Value?

ICRA Limited and CRISIL Limited are two prominent credit rating agencies operating in India. Both companies evaluate the creditworthiness of different entities, including corporations, governments, and financial institutions. While ICRA is a subsidiary of Moody's Investors Service, CRISIL is a subsidiary of Standard & Poor's. Investors often compare and analyze the stocks of these two companies to gauge the overall health of the credit rating industry and make informed investment decisions. Understanding the strengths and weaknesses of ICRA vs CRISIL stocks can provide valuable insights for investors in the ever-evolving market landscape.

ICRA or CRISIL?

When comparing ICRA and CRISIL, 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 ICRA and CRISIL.

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. ICRA has a dividend yield of 0.6%, while CRISIL has a dividend yield of 1.1%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ICRA reports a 5-year dividend growth of 24.57% year and a payout ratio of 0.00%. On the other hand, CRISIL reports a 5-year dividend growth of 11.06% 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 ICRA P/E ratio at 42.32 and CRISIL's P/E ratio at 57.72. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ICRA P/B ratio is 6.71 while CRISIL's P/B ratio is 17.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ICRA has seen a 5-year revenue growth of 0.39%, while CRISIL's is 0.77%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ICRA's ROE at 15.86% and CRISIL's ROE at 31.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹6612.00 for ICRA and ₹5163.05 for CRISIL. Over the past year, ICRA's prices ranged from ₹4983.40 to ₹7735.40, with a yearly change of 55.22%. CRISIL's prices fluctuated between ₹3660.70 and ₹5685.00, with a yearly change of 55.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.