Air Canada vs Jet Airways Which Offers More Value?

Air Canada and Jet Airways are two well-known airlines in the aviation industry. Both companies have enjoyed varying levels of success over the years, with Air Canada being a major player in the North American market and Jet Airways operating primarily in India and other parts of Asia. Investors interested in airline stocks may want to compare and contrast the performance of these two companies to make informed decisions about their investments. This analysis may involve looking at factors such as financial performance, market share, and growth potential.

Air Canada or Jet Airways?

When comparing Air Canada and Jet 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 Jet 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 Jet Airways 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, Jet Airways 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 3.57 and Jet Airways's P/E ratio at -7.66. 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 2.94 while Jet Airways's P/B ratio is 0.00.

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 Jet Airways's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air Canada's ROE at 177.01% and Jet Airways's ROE at 0.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $17.61 for Air Canada and ₹34.16 for Jet Airways. Over the past year, Air Canada's prices ranged from $10.16 to $18.56, with a yearly change of 82.68%. Jet Airways's prices fluctuated between ₹34.00 and ₹63.40, with a yearly change of 86.47%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.