Air China vs United Airlines Which Is More Promising?

Air China and United Airlines are two major players in the airline industry, both offering domestic and international flights to millions of passengers each year. Despite facing similar challenges such as fluctuating fuel prices and changing consumer preferences, the two companies have distinct financial performances and stock prices. Investors may be drawn to the stability and growth potential of Air China, a state-owned enterprise with a strong presence in the Asia-Pacific region. On the other hand, United Airlines, a leading US carrier, has been affected by various operational issues and labor disputes in recent years, which could impact its stock performance.

Air China or United Airlines?

When comparing Air China and United 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 United 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 United 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, United Airlines 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 -3019.12 and United Airlines's P/E ratio at 10.85. 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 United Airlines's P/B ratio is 2.62.

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 United Airlines's is 0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air China's ROE at -1.26% and United Airlines's ROE at 27.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.72 for Air China and $90.60 for United Airlines. Over the past year, Air China's prices ranged from $7.51 to $14.40, with a yearly change of 91.74%. United Airlines's prices fluctuated between $37.02 and $93.33, with a yearly change of 152.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.