IDFC First Bank vs Yes Bank Which Outperforms?

IDFC First Bank and Yes Bank are two prominent players in the banking sector in India. Both banks have faced their share of challenges in recent years, with Yes Bank experiencing a crisis in 2020 and IDFC First Bank struggling to gain market share. Investors are closely watching the performance of these two banks to determine their potential for growth and profitability. Despite their past difficulties, both IDFC First Bank and Yes Bank remain key players in the Indian banking industry, with their stocks attracting significant attention from investors.

IDFC First Bank or Yes Bank?

When comparing IDFC 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 IDFC 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. IDFC First Bank has a dividend yield of -%, while Yes Bank has a dividend yield of -%. 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, 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 IDFC First Bank P/E ratio at 21.00 and Yes Bank's P/E ratio at 37.23. 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 Yes Bank's P/B ratio is 1.44.

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 Yes Bank's is -0.24%. 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 Yes Bank's ROE at 4.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹64.17 for IDFC First Bank and ₹21.12 for Yes Bank. Over the past year, IDFC First Bank's prices ranged from ₹59.30 to ₹92.45, with a yearly change of 55.90%. 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.