Air China vs JetBlue Airways Which Is a Better Investment?

Air China and JetBlue Airways are two prominent players in the airline industry, each with its own unique strengths and challenges. Air China, as one of the largest airlines in China, has a strong presence in the lucrative Asian market. On the other hand, JetBlue Airways is a well-established low-cost carrier known for its customer-friendly policies and high-quality service. Both stocks have seen fluctuations in recent years due to increasing competition and changing market conditions. Investors looking to diversify their portfolio may find potential opportunities in both Air China and JetBlue Airways stocks.

Air China or JetBlue Airways?

When comparing Air China and JetBlue 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 JetBlue 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 JetBlue 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, JetBlue 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 -3016.53 and JetBlue Airways's P/E ratio at -2.82. 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 35.49 while JetBlue Airways's P/B ratio is 0.91.

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 JetBlue Airways's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air China's ROE at -1.26% and JetBlue Airways's ROE at -30.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.72 for Air China and $6.55 for JetBlue Airways. Over the past year, Air China's prices ranged from $7.51 to $14.40, with a yearly change of 91.74%. JetBlue Airways's prices fluctuated between $4.09 and $8.07, with a yearly change of 97.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.