Air Canada vs Swoop Which Is Superior?

Air Canada and Swoop, a subsidiary of WestJet Airlines, are two major players in the Canadian airline industry. While Air Canada is a well-established, full-service carrier with a global presence, Swoop is a newer, ultra-low-cost carrier that primarily operates domestic flights within Canada. Investors interested in the airline sector may consider comparing the stocks of these two companies to assess their performance, growth potential, and stability in the market. It is essential to conduct thorough research and analysis before making any investment decisions in the competitive aviation industry.

Air Canada or Swoop?

When comparing Air Canada and Swoop, 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 Swoop.

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 Swoop 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, Swoop 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 3.51 and Swoop's P/E ratio at -0.90. 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 Swoop's P/B ratio is 0.60.

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 Swoop's is -0.98%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air Canada's ROE at 177.01% and Swoop's ROE at -64.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $17.25 for Air Canada and A$0.15 for Swoop. Over the past year, Air Canada's prices ranged from $10.16 to $18.56, with a yearly change of 82.68%. Swoop's prices fluctuated between A$0.15 and A$0.28, with a yearly change of 77.42%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.