Air Canada vs Asiana Which Is Stronger?

Air Canada and Asiana are two prominent airlines with stocks that are closely watched by investors in the aviation industry. Air Canada is a major North American carrier with a strong market presence and a history of profitability. Asiana, on the other hand, is a leading South Korean airline known for its reliable service and extensive international route network. Both companies face challenges and opportunities in an increasingly competitive market, making their stocks of interest to investors looking to capitalize on the growth potential of the airline industry.

Air Canada or Asiana?

When comparing Air Canada and Asiana, 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 Asiana.

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 Asiana has a dividend yield of 8.52%. 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, Asiana reports a 5-year dividend growth of 13.94% year and a payout ratio of 99.80%.

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 3.64 and Asiana's P/E ratio at 8.40. 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 3.00 while Asiana's P/B ratio is 1.07.

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 Asiana's is -0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air Canada's ROE at 177.01% and Asiana's ROE at 12.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $18.22 for Air Canada and ฿8.45 for Asiana. Over the past year, Air Canada's prices ranged from $10.16 to $18.56, with a yearly change of 82.68%. Asiana's prices fluctuated between ฿6.35 and ฿11.20, with a yearly change of 76.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.