Yes Bank vs IDFC Which Performs Better?

Yes Bank and IDFC stocks are both major players in the banking and financial services sector in India. Yes Bank, known for its aggressive growth strategies and high volatility, has faced numerous challenges in recent years including governance issues and financial instability. On the other hand, IDFC, a diversified financial services conglomerate, has a more stable and conservative approach to business. Investors should carefully analyze the financial performance and potential risks associated with investing in both these stocks before making any decisions.

Yes Bank or IDFC?

When comparing Yes Bank and IDFC, 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 IDFC.

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 IDFC has a dividend yield of 0.92%. 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, IDFC 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 Yes Bank P/E ratio at 37.93 and IDFC's P/E ratio at 19.93. 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 1.46 while IDFC's P/B ratio is 1.29.

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 IDFC's is -0.85%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Yes Bank's ROE at 4.07% and IDFC's ROE at 8.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹21.36 for Yes Bank and ₹107.36 for IDFC. Over the past year, Yes Bank's prices ranged from ₹19.02 to ₹32.85, with a yearly change of 72.71%. IDFC's prices fluctuated between ₹104.50 and ₹129.70, with a yearly change of 24.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.