Air Canada vs Icelandair Which Is More Attractive?

Air Canada and Icelandair are two major airlines in the global aviation industry. Both companies have been impacted by the COVID-19 pandemic, with a significant decrease in air travel demand leading to financial challenges. Air Canada, based in Canada, has a larger market capitalization and fleet size compared to Icelandair, based in Iceland. Investors are closely monitoring the stock performance of both airlines to assess their resilience and recovery potential in the post-pandemic world.

Air Canada or Icelandair?

When comparing Air Canada and Icelandair, 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 Icelandair.

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 Icelandair 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, Icelandair 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 Icelandair's P/E ratio at -13.72. 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 Icelandair's P/B ratio is 1.28.

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 Icelandair's is -0.88%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air Canada's ROE at 177.01% and Icelandair's ROE at -10.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $18.04 for Air Canada and kr1.26 for Icelandair. Over the past year, Air Canada's prices ranged from $10.16 to $18.56, with a yearly change of 82.68%. Icelandair's prices fluctuated between kr0.84 and kr1.54, with a yearly change of 84.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.