mBank vs XTB Which Is More Profitable?

mBank and XTB are two major players in the Polish financial market, each offering unique advantages and disadvantages for investors. mBank, a leading retail bank in Poland, provides stability and a long-standing reputation in the industry. On the other hand, XTB, a prominent online brokerage firm, offers a wide range of trading services and innovative technology for investors. Both companies have experienced fluctuations in their stock prices, making them popular options for investors looking to diversify their portfolios.

mBank or XTB?

When comparing mBank and XTB, 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 mBank and XTB.

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. mBank has a dividend yield of -%, while XTB has a dividend yield of 7.1%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. mBank reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, XTB reports a 5-year dividend growth of 69.24% year and a payout ratio of 64.43%.

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 mBank P/E ratio at 19.38 and XTB's P/E ratio at 9.07. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. mBank P/B ratio is 1.56 while XTB's P/B ratio is 4.60.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, mBank has seen a 5-year revenue growth of 1.09%, while XTB's is 4.49%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with mBank's ROE at 8.57% and XTB's ROE at 50.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are zł557.80 for mBank and zł70.36 for XTB. Over the past year, mBank's prices ranged from zł488.10 to zł756.80, with a yearly change of 55.05%. XTB's prices fluctuated between zł36.60 and zł75.88, with a yearly change of 107.32%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.