HDFC Bank Limited (HDB) vs ICICI Bank Limited (IBN)

HDFC Bank Limited and ICICI Bank Limited are both Banks Regional companies. HDFC Bank Limited is the larger, with a market value of $120.7B against $100.1B — 1.2× the size. HDFC Bank Limited trades at the lower P/E: 15.5× against 17.2×. ICICI Bank Limited grew revenue faster over the last twelve months: −1.20% against −11.2%. ICICI Bank Limited has the higher net margin (17.7% vs 17.0%) and the higher return on invested capital (9.80% vs 0.00%). Both pay a dividend; HDFC Bank Limited yields more (1.30% vs 1.02%). Across the 19 metrics below, HDFC Bank Limited leads on 10 and ICICI Bank Limited on 9.

Valuation

Metric HDB IBN Banks Regional median
P/E 15.53 17.23 12.15
P/S 2.63 2.86 2.37
P/B 1.77 2.37 1.21
Price to free cash flow 3.46 4.18 10.80
EV/EBITDA n/m n/m —
EV/Sales 0.12 2.95 2.27
Earnings yield 6.44% 5.80% 8.11%
Free cash flow yield 28.93% 23.94% 8.98%

Profitability

Metric HDB IBN Banks Regional median
Gross margin 57.09% 71.98% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 17.01% 17.65% 18.66%
Free cash flow margin 0.00% 0.00% 21.18%
Return on equity 11.54% 14.95% 10.64%
Return on assets 1.46% 1.96% 1.13%
Return on invested capital 0.00% 9.80% 8.33%

Growth

Metric HDB IBN Banks Regional median
Revenue growth (TTM) (11.19%) (1.20%) 6.61%
EPS growth (last fiscal year) (1.22%) 0.64% —
Revenue growth, 5-year CAGR 17.30% 10.12% 12.30%
Net income growth, 5-year CAGR 11.00% 19.80% 9.71%

Health

Metric HDB IBN Banks Regional median
Debt to equity 0.00 0.57 0.22
Current ratio 0.42 1.03 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric HDB IBN Banks Regional median
Dividend yield 1.30% 1.02% 3.75%
Payout ratio 0.17 0.00 0.27

Size

Metric HDB IBN Banks Regional median
Market cap 120.71b 100.06b 921.07m

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