IDFC First Bank vs Axis Bank Which Is More Favorable?

IDFC First Bank and Axis Bank are two prominent players in the Indian banking sector, with both institutions catering to a wide range of customers and offering various financial products and services. Investors interested in banking stocks often compare IDFC First Bank and Axis Bank to determine which investment option may be more lucrative. Each bank has its own strengths and weaknesses, making it crucial for investors to conduct thorough research and analysis before making any investment decisions.

IDFC First Bank or Axis Bank?

When comparing IDFC First 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 IDFC First 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. IDFC First Bank has a dividend yield of -%, 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. IDFC First 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 IDFC First Bank P/E ratio at 21.00 and Axis Bank's P/E ratio at 12.66. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IDFC First Bank P/B ratio is 1.32 while Axis Bank's P/B ratio is 2.05.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IDFC First Bank has seen a 5-year revenue growth of 3.12%, while Axis Bank's is -0.69%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IDFC First Bank's ROE at 7.11% 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 ₹64.17 for IDFC First Bank and $67.00 for Axis Bank. Over the past year, IDFC First Bank's prices ranged from ₹59.30 to ₹92.45, with a yearly change of 55.90%. 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.