Indian Overseas Bank vs SBI Which Is Stronger?

Indian Overseas Bank and State Bank of India are two prominent public sector banks in India, both listed on the stock exchange. Investors are often interested in comparing these two stocks to make informed decisions about their investments. Indian Overseas Bank has a smaller market capitalization and a higher level of risk compared to SBI, which is the largest bank in India. While SBI offers stability and a proven track record, Indian Overseas Bank may present higher growth potential but with increased volatility.

Indian Overseas Bank or SBI?

When comparing Indian Overseas Bank and SBI, 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 Indian Overseas Bank and SBI.

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. Indian Overseas Bank has a dividend yield of -%, while SBI has a dividend yield of 4.45%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Indian Overseas Bank reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, SBI reports a 5-year dividend growth of -44.26% year and a payout ratio of 56.44%.

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 Indian Overseas Bank P/E ratio at 36.80 and SBI's P/E ratio at 13.24. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Indian Overseas Bank P/B ratio is 3.88 while SBI's P/B ratio is 0.88.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Indian Overseas Bank has seen a 5-year revenue growth of 0.21%, while SBI's is 1.88%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Indian Overseas Bank's ROE at 10.82% and SBI's ROE at 7.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹57.05 for Indian Overseas Bank and $24.01 for SBI. Over the past year, Indian Overseas Bank's prices ranged from ₹40.75 to ₹83.75, with a yearly change of 105.52%. SBI's prices fluctuated between $19.00 and $27.02, with a yearly change of 42.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.