Air China vs Asiana Which Offers More Value?

Air China and Asiana are two major airlines in the Asian market, each offering unique investment opportunities for prospective shareholders. Air China is one of the largest airlines in China, with a strong domestic and international presence. On the other hand, Asiana is a South Korean airline known for its quality service and innovative strategies. Investors looking to capitalize on the growing aviation industry in Asia may find these stocks appealing, but careful analysis of each company's financial performance and market position is essential.

Air China or Asiana?

When comparing Air China and Asiana, 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 Asiana.

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 Asiana has a dividend yield of 8.57%. 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, Asiana reports a 5-year dividend growth of 13.94% year and a payout ratio of 99.80%.

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 Asiana's P/E ratio at 8.35. 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 41.52 while Asiana's P/B ratio is 1.06.

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 Asiana's is -0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air China's ROE at -1.26% and Asiana's ROE at 12.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.95 for Air China and ฿8.35 for Asiana. Over the past year, Air China's prices ranged from $7.51 to $13.95, with a yearly change of 85.75%. Asiana's prices fluctuated between ฿6.35 and ฿11.20, with a yearly change of 76.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.