Air Canada vs Cathay Pacific Airways Which Is More Favorable?

Air Canada and Cathay Pacific Airways are two leading airline companies that are traded on the stock market. Both companies have a strong presence in the global aviation industry, offering a wide range of routes and services to their customers. However, their stocks have performed differently in recent years, with Air Canada seeing more volatility in its stock price compared to Cathay Pacific Airways. Investors interested in the airline industry may want to carefully compare and analyze these two stocks before making investment decisions.

Air Canada or Cathay Pacific Airways?

When comparing Air Canada and Cathay Pacific 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 Canada and Cathay Pacific 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 Canada has a dividend yield of -%, while Cathay Pacific Airways has a dividend yield of 0.75%. 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, Cathay Pacific Airways reports a 5-year dividend growth of 0.00% year and a payout ratio of 37.85%.

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 3.51 and Cathay Pacific Airways's P/E ratio at 40.93. 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 2.90 while Cathay Pacific Airways's P/B ratio is 6.09.

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 Cathay Pacific Airways's is -0.90%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air Canada's ROE at 177.01% and Cathay Pacific Airways's ROE at 15.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $17.25 for Air Canada and $6.15 for Cathay Pacific Airways. Over the past year, Air Canada's prices ranged from $10.16 to $18.56, with a yearly change of 82.68%. Cathay Pacific Airways's prices fluctuated between $4.84 and $6.34, with a yearly change of 30.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.