IDBI Bank vs Axis Bank Which Is More Attractive?

In the competitive world of banking, IDBI Bank and Axis Bank are two major players in the Indian financial market. Both banks are well-established and have a strong presence in the industry, offering a wide range of banking and financial services to customers. Investors interested in the banking sector often compare stocks of these two banks to determine potential investment opportunities. This comparison involves analyzing various factors such as financial performance, market share, growth prospects, and overall stability of the banks. Let us delve deeper into the comparison of IDBI Bank vs Axis Bank stocks to understand their respective strengths and weaknesses.

IDBI Bank or Axis Bank?

When comparing IDBI 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 IDBI 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. IDBI Bank has a dividend yield of 1.77%, 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. IDBI Bank reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 IDBI Bank P/E ratio at 13.43 and Axis Bank's P/E ratio at 12.75. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IDBI Bank P/B ratio is 1.66 while Axis Bank's P/B ratio is 2.06.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IDBI Bank has seen a 5-year revenue growth of 0.50%, while Axis Bank's is -0.69%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IDBI Bank's ROE at 12.93% 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 ₹84.16 for IDBI Bank and $67.60 for Axis Bank. Over the past year, IDBI Bank's prices ranged from ₹63.40 to ₹107.90, with a yearly change of 70.19%. 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.