Air China vs ANA Which Performs Better?

Air China and ANA (All Nippon Airways) are two prominent airlines in the Asian market that have caught the attention of investors looking to capitalize on the growing demand for air travel in the region. Both companies have a strong track record of profitability and growth, but they also face challenges such as rising fuel costs and increased competition. Investors considering these stocks should carefully evaluate factors such as market trends, financial performance, and overall industry outlook before making any investment decisions in either Air China or ANA.

Air China or ANA?

When comparing Air China and ANA, 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 ANA.

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 ANA has a dividend yield of 0.01%. 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, ANA 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 -3537.52 and ANA's P/E ratio at 2.08. 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 41.54 while ANA's P/B ratio is 0.29.

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 ANA's is -0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air China's ROE at -1.26% and ANA's ROE at 14.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.95 for Air China and $3.87 for ANA. Over the past year, Air China's prices ranged from $7.51 to $13.95, with a yearly change of 85.75%. ANA's prices fluctuated between $3.51 and $4.62, with a yearly change of 31.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.