Yes Bank vs HDFC Bank Which Is Stronger?

Yes Bank and HDFC Bank are two prominent names in the Indian banking sector that investors often compare when making investment decisions. Yes Bank, once considered a promising growth stock, has faced significant challenges in recent years, including a sharp decline in stock price and management turmoil. On the other hand, HDFC Bank is known for its stable growth, strong financials, and consistent performance. Investors closely monitor these two stocks to analyze their potential for returns and risk.

Yes Bank or HDFC Bank?

When comparing Yes Bank and HDFC 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 Yes Bank and HDFC 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. Yes Bank has a dividend yield of -%, while HDFC Bank has a dividend yield of 0.02%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Yes Bank reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, HDFC Bank reports a 5-year dividend growth of 20.05% 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 Yes Bank P/E ratio at 37.23 and HDFC Bank's P/E ratio at 63.30. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Yes Bank P/B ratio is 1.44 while HDFC Bank's P/B ratio is 9.07.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Yes Bank has seen a 5-year revenue growth of -0.24%, while HDFC Bank's is 0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Yes Bank's ROE at 4.07% and HDFC Bank's ROE at 15.25%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹21.12 for Yes Bank and $66.53 for HDFC Bank. Over the past year, Yes Bank's prices ranged from ₹19.02 to ₹32.85, with a yearly change of 72.71%. HDFC Bank's prices fluctuated between $52.16 and $68.50, with a yearly change of 31.33%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.