Air China vs Delta Which Is More Lucrative?

Air China and Delta are two major players in the airline industry, both with a global reach and strong market presence. As global aviation continues to recover from the impact of the COVID-19 pandemic, investors are closely monitoring the performance of these companies' stocks. Air China, as the flag carrier of China, has a strong domestic market and strategic international partnerships. Delta, on the other hand, is one of the largest airlines in the world, with a focus on operational efficiency and customer service. Both stocks offer potential opportunities for investors looking to capitalize on the rebounding travel industry.

Air China or Delta?

When comparing Air China and Delta, 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 Delta.

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 Delta has a dividend yield of 1.09%. 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, Delta reports a 5-year dividend growth of 4.56% 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 -3019.12 and Delta's P/E ratio at 19.80. 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 35.51 while Delta's P/B ratio is 1.21.

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 Delta's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air China's ROE at -1.26% and Delta's ROE at 6.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.72 for Air China and ₹114.51 for Delta. Over the past year, Air China's prices ranged from $7.51 to $14.40, with a yearly change of 91.74%. Delta's prices fluctuated between ₹104.45 and ₹159.80, with a yearly change of 52.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.