Air Canada vs Expedia Which Is More Attractive?

Air Canada and Expedia are two prominent companies in the travel industry that have seen significant changes in their stock performance. Air Canada, as a major airline carrier, has faced challenges due to the impact of the global pandemic on travel demand. In contrast, Expedia, a leading online travel agency, has benefited from the shift towards digital booking platforms. Both companies offer unique investment opportunities with potential risks and rewards for investors looking to capitalize on the recovery of the travel industry.

Air Canada or Expedia?

When comparing Air Canada and Expedia, 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 Expedia.

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 Expedia 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, Expedia 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 3.59 and Expedia's P/E ratio at 23.05. 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 2.96 while Expedia's P/B ratio is 18.60.

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 Expedia's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air Canada's ROE at 177.01% and Expedia's ROE at 92.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $18.04 for Air Canada and $188.85 for Expedia. Over the past year, Air Canada's prices ranged from $10.16 to $18.56, with a yearly change of 82.68%. Expedia's prices fluctuated between $107.25 and $192.34, with a yearly change of 79.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.