Air Asia vs Bangkok Airways Which Outperforms?

Air Asia and Bangkok Airways are two prominent airlines in Southeast Asia that have garnered investors' attention in recent years. Air Asia, known for its low-cost model, has seen fluctuating stock prices as it navigates challenges in the industry. On the other hand, Bangkok Airways, a boutique airline offering premium services, has shown relatively stable stock performance. Investors are closely monitoring the competition between these two airlines to determine which may offer better growth potential in the long run.

Air Asia or Bangkok Airways?

When comparing Air Asia and Bangkok Airways, 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 Air Asia and Bangkok Airways.

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. Air Asia has a dividend yield of 1.67%, while Bangkok Airways has a dividend yield of 6.58%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Air Asia reports a 5-year dividend growth of -41.79% year and a payout ratio of 76.79%. On the other hand, Bangkok Airways reports a 5-year dividend growth of 0.00% year and a payout ratio of 50.57%.

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 Air Asia P/E ratio at 46.36 and Bangkok Airways's P/E ratio at 12.29. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Air Asia P/B ratio is 1.94 while Bangkok Airways's P/B ratio is 2.89.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Air Asia has seen a 5-year revenue growth of 0.52%, while Bangkok Airways's is -0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air Asia's ROE at 4.23% and Bangkok Airways's ROE at 23.04%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$31.70 for Air Asia and ฿22.90 for Bangkok Airways. Over the past year, Air Asia's prices ranged from NT$29.10 to NT$47.60, with a yearly change of 63.57%. Bangkok Airways's prices fluctuated between ฿13.80 and ฿26.00, with a yearly change of 88.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.