Air China vs Air Canada Which Is More Favorable?

Air China and Air Canada are two major players in the global aviation industry, each with its own strengths and weaknesses. Both airlines have experienced fluctuations in their stock prices over the years, influenced by various factors such as fuel prices, competition, and global economic conditions. Investors may be drawn to Air China for its strong presence in the growing Asian market, while Air Canada's reputation for excellent customer service and reliability may attract others. Analyzing the performance and future prospects of these two airlines can provide valuable insights for potential investors.

Air China or Air Canada?

When comparing Air China and Air Canada, 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 China and Air Canada.

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 China has a dividend yield of -%, while Air Canada has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Air China reports a 5-year dividend growth of 0.00% year and a payout ratio of -1443.32%. On the other hand, Air Canada 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 China P/E ratio at -3116.49 and Air Canada's P/E ratio at 3.57. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Air China P/B ratio is 36.62 while Air Canada's P/B ratio is 2.94.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Air China has seen a 5-year revenue growth of -0.03%, while Air Canada's is -0.14%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air China's ROE at -1.26% and Air Canada's ROE at 177.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $12.30 for Air China and $17.61 for Air Canada. Over the past year, Air China's prices ranged from $7.51 to $13.41, with a yearly change of 78.56%. Air Canada's prices fluctuated between $10.16 and $18.56, with a yearly change of 82.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.