Air China vs Singapore Airlines Which Performs Better?

Air China and Singapore Airlines are two of the biggest players in the aviation industry, with a global presence and strong track records of performance. Both companies have faced challenges in recent years, including the impact of the COVID-19 pandemic on air travel demand. Investors looking to invest in the airline sector may consider the stocks of these two companies, weighing factors such as financial stability, competitive positioning, and growth prospects. It is important to conduct thorough research and analysis before making investment decisions in the volatile aviation sector.

Air China or Singapore Airlines?

When comparing Air China and Singapore 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 Singapore 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 Singapore Airlines has a dividend yield of 4.27%. 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, Singapore Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 42.90%.

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 -3537.52 and Singapore Airlines's P/E ratio at 11.97. 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 41.52 while Singapore Airlines's P/B ratio is 2.30.

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 Singapore Airlines's is -0.69%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air China's ROE at -1.26% and Singapore Airlines's ROE at 17.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.95 for Air China and $9.44 for Singapore Airlines. Over the past year, Air China's prices ranged from $7.51 to $13.95, with a yearly change of 85.75%. Singapore Airlines's prices fluctuated between $8.63 and $10.99, with a yearly change of 27.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.