Air Canada vs EVA Airways

Air Canada and EVA Airways are two major players in the airline industry, each offering unique opportunities for investors. Air Canada is the largest airline in Canada and has shown resilience in the face of economic challenges, while EVA Airways is a leading carrier in Taiwan known for its high-quality service. Both companies have experienced fluctuations in their stock prices in recent years, making them intriguing options for investors looking to diversify their portfolios. Investors should carefully consider the factors influencing these stocks before making any investment decisions.

Air Canada or EVA Airways?

When comparing Air Canada and EVA 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 EVA 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 EVA Airways has a dividend yield of 4.96%. 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, EVA Airways reports a 5-year dividend growth of 35.04% year and a payout ratio of 18.14%.

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 3.49 and EVA Airways's P/E ratio at 8.29. 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 5.28 while EVA Airways's P/B ratio is 1.83.

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 EVA Airways'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 219.28% and EVA Airways's ROE at 22.88%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $12.45 for Air Canada and NT$36.35 for EVA Airways. Over the past year, Air Canada's prices ranged from $10.16 to $14.91, with a yearly change of 46.75%. EVA Airways's prices fluctuated between NT$25.90 and NT$39.35, with a yearly change of 51.93%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.