Air Canada vs ANA Which Is More Promising?

Air Canada and ANA (All Nippon Airways) are two major players in the airline industry, with a global presence and a strong reputation for quality service. Both companies have seen fluctuations in their stock prices due to various factors such as economic conditions, fuel prices, and competition. Investors interested in airline stocks may consider comparing Air Canada and ANA to determine which company offers better value and growth potential. By analyzing key financial metrics and market trends, investors can make informed decisions on whether to invest in Air Canada or ANA stocks.

Air Canada or ANA?

When comparing Air Canada and ANA, 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 ANA.

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 ANA has a dividend yield of 0.01%. 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, ANA reports a 5-year dividend growth of 0.00% 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 Air Canada P/E ratio at 3.25 and ANA's P/E ratio at 2.03. 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 7.11 while ANA's P/B ratio is 0.29.

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 -0.08%, while ANA's is -0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air Canada's ROE at 316.92% and ANA's ROE at 14.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $16.11 for Air Canada and $3.63 for ANA. Over the past year, Air Canada's prices ranged from $10.16 to $17.09, with a yearly change of 68.21%. ANA's prices fluctuated between $3.51 and $4.62, with a yearly change of 31.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.