Air China vs Japan Airlines Which Outperforms?

Air China and Japan Airlines are two prominent airlines in Asia that are publicly traded on the stock market. Both companies have faced challenges in recent years due to the impact of the global pandemic on the travel industry. Air China, as the flag carrier of China, has shown resilience in navigating these challenges, while Japan Airlines has also worked to adapt to the changing market conditions. Investors interested in the airline industry may find opportunities in evaluating the performance of these two stocks.

Air China or Japan Airlines?

When comparing Air China and Japan Airlines, 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 Japan Airlines.

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 Japan Airlines 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, Japan Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 37.52%.

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 Japan Airlines's P/E ratio at 6.53. 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 Japan Airlines's P/B ratio is 0.62.

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 Japan Airlines's is 0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air China's ROE at -1.26% and Japan Airlines's ROE at 9.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $12.30 for Air China and $8.45 for Japan Airlines. Over the past year, Air China's prices ranged from $7.51 to $13.41, with a yearly change of 78.56%. Japan Airlines's prices fluctuated between $7.27 and $10.17, with a yearly change of 39.89%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.