Air France-KLM vs Cathay Pacific Airways

Air France-KLM and Cathay Pacific Airways are two prominent players in the airline industry, each with its unique strengths and challenges. Air France-KLM is a European airline group formed by the merger of Air France and KLM Royal Dutch Airlines, while Cathay Pacific is a leading international airline based in Hong Kong. Both companies have faced turbulent times in recent years due to various factors, including economic challenges and the impact of the COVID-19 pandemic. Investors interested in these stocks should carefully evaluate each company's financial performance, market positioning, and growth prospects before making investment decisions.

Air France-KLM or Cathay Pacific Airways?

When comparing Air France-KLM and Cathay Pacific 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 France-KLM and Cathay Pacific 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 France-KLM has a dividend yield of -%, while Cathay Pacific Airways has a dividend yield of 1.01%. 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 41.30%. On the other hand, Cathay Pacific Airways reports a 5-year dividend growth of 0.00% year and a payout ratio of 37.85%.

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 0.95 and Cathay Pacific Airways's P/E ratio at 33.32. 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 -0.07 while Cathay Pacific Airways's P/B ratio is 4.96.

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 4.35%, while Cathay Pacific Airways's is -0.88%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air France-KLM's ROE at -9.39% and Cathay Pacific Airways's ROE at 15.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.94 for Air France-KLM and $5.10 for Cathay Pacific Airways. Over the past year, Air France-KLM's prices ranged from $0.77 to $1.65, with a yearly change of 114.29%. Cathay Pacific Airways's prices fluctuated between $4.70 and $5.89, with a yearly change of 25.32%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.