IDFC vs IDFC First Bank Which Is More Reliable?

IDFC and IDFC First Bank are two entities within the Indian financial services sector that have attracted the attention of investors seeking exposure to the country's growing economy. IDFC, originally a standalone financial institution, underwent a transformation with the merger of Capital First in 2018 to become IDFC First Bank. This move expanded the bank's offerings and reach, positioning it as a strong player in the banking industry. Investors must carefully consider the financial health, growth prospects, and market dynamics when evaluating IDFC and IDFC First Bank stocks.

IDFC or IDFC First Bank?

When comparing IDFC and IDFC First 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 and IDFC First 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 has a dividend yield of 0.92%, while IDFC First Bank has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IDFC reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, IDFC First 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 P/E ratio at 20.07 and IDFC First Bank's P/E ratio at 21.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IDFC P/B ratio is 1.30 while IDFC First Bank's P/B ratio is 1.36.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IDFC has seen a 5-year revenue growth of -0.83%, while IDFC First Bank's is 6.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IDFC's ROE at 8.92% and IDFC First Bank's ROE at 7.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹107.36 for IDFC and ₹65.52 for IDFC First Bank. Over the past year, IDFC's prices ranged from ₹104.50 to ₹129.70, with a yearly change of 24.11%. IDFC First Bank's prices fluctuated between ₹59.30 and ₹92.45, with a yearly change of 55.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.