Yes Bank vs IDFC First Bank Which Is More Lucrative?

Yes Bank and IDFC First Bank are two prominent banks in the Indian market, competing for investors' attention. Yes Bank, once a leading player in the banking sector, has faced financial challenges in recent years, leading to a decline in its stock value. On the other hand, IDFC First Bank has been steadily growing its presence in the market, offering innovative products and services to customers. Both banks have their unique strengths and weaknesses, making them intriguing options for investors looking to capitalize on the dynamic banking sector in India.

Yes Bank or IDFC First Bank?

When comparing Yes Bank and IDFC First 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 IDFC First 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 IDFC First Bank has a dividend yield of -%. 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 First 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 Yes Bank P/E ratio at 37.04 and IDFC First Bank's P/E ratio at 20.97. 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 1.43 while IDFC First Bank's P/B ratio is 1.31.

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 First Bank's is 3.12%. 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 First Bank's ROE at 7.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹20.70 for Yes Bank and ₹63.07 for IDFC First Bank. Over the past year, Yes Bank's prices ranged from ₹19.02 to ₹32.85, with a yearly change of 72.71%. IDFC First Bank's prices fluctuated between ₹59.30 and ₹92.45, with a yearly change of 55.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.