IDFC vs Yes Bank Which Is More Attractive?

IDFC and Yes Bank are two prominent players in the Indian banking industry, both known for their distinct business models and market strategies. IDFC, as a diversified financial institution, focuses on infrastructure financing and other financial services, while Yes Bank is a retail and corporate banking powerhouse. Both companies have witnessed ups and downs in their stock performance, with investors closely monitoring their financial health and strategic decisions. This comparison will delve into their stock performance, market outlook, and potential investment opportunities.

IDFC or Yes Bank?

When comparing IDFC 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 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 has a dividend yield of 0.92%, while Yes 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, 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 P/E ratio at 19.93 and Yes Bank's P/E ratio at 37.90. 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 1.29 while Yes Bank's P/B ratio is 1.46.

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 -0.85%, while Yes Bank's is -0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IDFC's ROE at 8.92% 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 ₹107.36 for IDFC and ₹21.45 for Yes Bank. Over the past year, IDFC's prices ranged from ₹104.50 to ₹129.70, with a yearly change of 24.11%. 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.