Air China vs Jet Airways Which Is Superior?

Air China and Jet Airways are two prominent players in the airline industry, each with a unique position in the market. Air China is the flag carrier of China and one of the largest airlines in the country, while Jet Airways is a major Indian airline with a strong domestic and international presence. Both companies' stocks have been subject to fluctuations in recent years due to various factors such as fuel prices, competition, and economic conditions. This comparison will provide an overview of the performances of Air China and Jet Airways stocks, highlighting their strengths, weaknesses, and potential for future growth.

Air China or Jet Airways?

When comparing Air China and Jet 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 Jet 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 Jet Airways 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, Jet Airways 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 -2997.91 and Jet Airways's P/E ratio at -7.66. 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 35.19 while Jet Airways's P/B ratio is 0.00.

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 Jet Airways's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air China's ROE at -1.26% and Jet Airways's ROE at 0.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.72 for Air China and ₹34.16 for Jet Airways. Over the past year, Air China's prices ranged from $7.51 to $14.40, with a yearly change of 91.74%. Jet Airways's prices fluctuated between ₹34.00 and ₹65.90, with a yearly change of 93.82%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.