Air Canada vs Singapore Airlines

Air Canada and Singapore Airlines are two prominent players in the airline industry, each with its own unique strengths and weaknesses. Air Canada is the largest airline in Canada, with a strong presence in North America and an extensive route network. Singapore Airlines, on the other hand, is known for its exceptional service and luxurious amenities, making it a popular choice for premium travelers. Both stocks have been affected by the global pandemic, but investors are closely monitoring their recovery efforts and future prospects in the post-COVID world.

Air Canada or Singapore Airlines?

When comparing Air Canada and Singapore 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 Singapore 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 Singapore Airlines has a dividend yield of 4.19%. 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, Singapore Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 29.86%.

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 Singapore Airlines's P/E ratio at 10.04. 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 Singapore Airlines's P/B ratio is 2.52.

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 Singapore Airlines's is -0.69%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air Canada's ROE at 219.28% and Singapore Airlines's ROE at 23.54%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $12.45 for Air Canada and $9.72 for Singapore Airlines. Over the past year, Air Canada's prices ranged from $10.16 to $14.91, with a yearly change of 46.75%. Singapore Airlines's prices fluctuated between $8.62 and $10.99, with a yearly change of 27.49%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.