Air Canada vs Japan Airlines Which Is More Profitable?

Investors looking to diversify their portfolio may be considering adding airline stocks to their mix. Two popular options in the industry are Air Canada and Japan Airlines. Air Canada, the largest airline in Canada, has seen fluctuations in its stock price due to changes in the global travel industry. On the other hand, Japan Airlines, one of the largest carriers in Asia, has also experienced ups and downs in its stock performance. Both companies have unique strengths and weaknesses that investors should consider before making a decision.

Air Canada

Japan Airlines

Stock Price
Day Low$17.25
Day High$17.84
Year Low$10.16
Year High$18.56
Yearly Change82.68%
Revenue
Revenue Per Share$61.53
5 Year Revenue Growth-0.14%
10 Year Revenue Growth0.28%
Profit
Gross Profit Margin0.29%
Operating Profit Margin0.05%
Net Profit Margin0.12%
Stock Price
Day Low$8.30
Day High$8.30
Year Low$7.27
Year High$10.17
Yearly Change39.89%
Revenue
Revenue Per Share$3881.51
5 Year Revenue Growth0.61%
10 Year Revenue Growth0.84%
Profit
Gross Profit Margin0.57%
Operating Profit Margin0.08%
Net Profit Margin0.05%

Air Canada

Japan Airlines

Financial Ratios
P/E ratio3.51
PEG ratio0.01
P/B ratio2.90
ROE177.01%
Payout ratio0.00%
Current ratio0.92
Quick ratio0.89
Cash ratio0.30
Dividend
Dividend Yield-%
5 Year Dividend Yield0.00%
10 Year Dividend Yield0.00%
Air Canada Dividend History
Financial Ratios
P/E ratio6.45
PEG ratio-0.00
P/B ratio0.61
ROE9.66%
Payout ratio37.52%
Current ratio1.42
Quick ratio1.36
Cash ratio1.01
Dividend
Dividend Yield-%
5 Year Dividend Yield0.00%
10 Year Dividend Yield0.00%
Japan Airlines Dividend History

Air Canada or Japan Airlines?

When comparing Air Canada and Japan Airlines, 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 Japan Airlines.

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 Japan Airlines 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, Japan Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 37.52%.

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 Japan Airlines's P/E ratio at 6.45. 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 Japan Airlines's P/B ratio is 0.61.

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 Japan Airlines's is 0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air Canada's ROE at 177.01% and Japan Airlines's ROE at 9.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $17.25 for Air Canada and $8.30 for Japan Airlines. Over the past year, Air Canada's prices ranged from $10.16 to $18.56, with a yearly change of 82.68%. Japan Airlines's prices fluctuated between $7.27 and $10.17, with a yearly change of 39.89%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.

Comparision