Yes Bank vs SBI Which Should You Buy?

Yes Bank and State Bank of India (SBI) are two major players in the Indian banking sector, with both stocks being closely monitored by investors and analysts. Yes Bank, known for its aggressive growth strategy, has faced challenges in recent years due to concerns about its asset quality and management practices. On the other hand, SBI is India's largest public sector bank, known for its strong fundamentals and stable operations. Investors often compare the two stocks to assess their potential for returns and risk.

Yes Bank or SBI?

When comparing Yes Bank and SBI, 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 SBI.

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 SBI has a dividend yield of 4.03%. 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, SBI reports a 5-year dividend growth of -44.26% year and a payout ratio of 56.44%.

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 SBI's P/E ratio at 14.70. 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 SBI's P/B ratio is 0.98.

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 SBI's is 1.88%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Yes Bank's ROE at 4.07% and SBI's ROE at 7.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹20.70 for Yes Bank and $26.50 for SBI. Over the past year, Yes Bank's prices ranged from ₹19.02 to ₹32.85, with a yearly change of 72.71%. SBI's prices fluctuated between $19.00 and $27.02, with a yearly change of 42.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.