Air Canada vs Air China Which Is Superior?

Air Canada and Air China are two prominent airlines in their respective countries that have been attracting investors' attention. Both companies have had their share of challenges and successes in recent years, reflecting the volatile nature of the aviation industry. While Air Canada has seen strong growth in passenger numbers and revenue, Air China has struggled with the impact of the global pandemic on international travel. Investors may want to compare the performance of these stocks to determine which one offers the most potential for growth and stability in the future.

Air Canada or Air China?

When comparing Air Canada and Air China, 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 Canada and Air China.

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 Canada has a dividend yield of -%, while Air China has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Air Canada reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Air China reports a 5-year dividend growth of 0.00% year and a payout ratio of -1443.32%.

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 Canada P/E ratio at 3.57 and Air China's P/E ratio at -3116.49. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Air Canada P/B ratio is 2.94 while Air China's P/B ratio is 36.62.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Air Canada has seen a 5-year revenue growth of -0.14%, while Air China's is -0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air Canada's ROE at 177.01% and Air China's ROE at -1.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $17.61 for Air Canada and $12.30 for Air China. Over the past year, Air Canada's prices ranged from $10.16 to $18.56, with a yearly change of 82.68%. Air China's prices fluctuated between $7.51 and $13.41, with a yearly change of 78.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.