Air China vs Cathay Pacific Airways Which Is More Profitable?
Air China and Cathay Pacific Airways are two major players in the airline industry, both based in East Asia. While Air China is the flag carrier of China, Cathay Pacific Airways is the flag carrier of Hong Kong. Both companies have seen fluctuations in their stock prices due to the volatile nature of the airline industry, particularly during times of economic uncertainty and global crises. Investors interested in these stocks should carefully consider factors such as market trends, company performance, and regulatory changes before making investment decisions.
Air China or Cathay Pacific Airways?
When comparing Air China and Cathay Pacific Airways, 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 Cathay Pacific Airways.
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 Cathay Pacific Airways has a dividend yield of 0.77%. 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, Cathay Pacific Airways reports a 5-year dividend growth of 0.00% year and a payout ratio of 37.85%.
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 Cathay Pacific Airways's P/E ratio at 40.28. 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 Cathay Pacific Airways's P/B ratio is 5.99.
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 Cathay Pacific Airways's is -0.90%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air China's ROE at -1.26% and Cathay Pacific Airways's ROE at 15.11%.
Retail Investors:
Retail investors often consider stock affordability and company familiarity. For example, day low prices are $12.30 for Air China and $6.15 for Cathay Pacific Airways. Over the past year, Air China's prices ranged from $7.51 to $13.41, with a yearly change of 78.56%. Cathay Pacific Airways's prices fluctuated between $4.84 and $6.34, with a yearly change of 30.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.