Air France-KLM vs Air China Which Is a Better Investment?

Air France-KLM and Air China are two major players in the global aviation industry, each representing distinctive regions and markets. While both companies have faced challenges due to the COVID-19 pandemic, there are significant differences in their performance and outlook. Air France-KLM has struggled with financial losses and restructuring efforts, while Air China has shown resilience with a strong domestic market presence. Investors will need to carefully analyze the strengths and weaknesses of each company before making investment decisions.

Air France-KLM or Air China?

When comparing Air France-KLM and Air China, 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 France-KLM and Air China.

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 France-KLM has a dividend yield of -%, while Air China has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Air France-KLM reports a 5-year dividend growth of 0.00% year and a payout ratio of 54.03%. On the other hand, Air China reports a 5-year dividend growth of 0.00% year and a payout ratio of -1443.32%.

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 France-KLM P/E ratio at 1.85 and Air China's P/E ratio at -3537.52. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Air France-KLM P/B ratio is -0.13 while Air China's P/B ratio is 41.52.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Air France-KLM has seen a 5-year revenue growth of -0.77%, while Air China's is -0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air France-KLM's ROE at -5.17% and Air China's ROE at -1.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.80 for Air France-KLM and $13.95 for Air China. Over the past year, Air France-KLM's prices ranged from $0.75 to $1.65, with a yearly change of 120.00%. Air China's prices fluctuated between $7.51 and $13.95, with a yearly change of 85.75%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.