Yes Bank vs Kotak Mahindra Bank Which Outperforms?

Yes Bank and Kotak Mahindra Bank are two prominent players in the Indian banking sector. Yes Bank has been facing challenges in recent years due to governance issues and deteriorating financial health, leading to a significant decline in its stock price. On the other hand, Kotak Mahindra Bank has established itself as a strong player in the market with consistent growth and a solid financial performance. Investors are closely monitoring both stocks to assess their potential for future returns and stability.

Yes Bank or Kotak Mahindra Bank?

When comparing Yes Bank and Kotak Mahindra 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 Kotak Mahindra 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 Kotak Mahindra Bank has a dividend yield of 0.11%. 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, Kotak Mahindra Bank reports a 5-year dividend growth of 20.11% 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 Kotak Mahindra Bank's P/E ratio at 16.25. 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 Kotak Mahindra Bank's P/B ratio is 2.44.

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 Kotak Mahindra Bank's is 1.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Yes Bank's ROE at 4.07% and Kotak Mahindra Bank's ROE at 16.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹20.70 for Yes Bank and ₹1748.05 for Kotak Mahindra Bank. Over the past year, Yes Bank's prices ranged from ₹19.02 to ₹32.85, with a yearly change of 72.71%. Kotak Mahindra Bank's prices fluctuated between ₹1543.85 and ₹1942.00, with a yearly change of 25.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.