American Airlines vs Air China Which Is More Lucrative?
American Airlines and Air China are both prominent players in the aviation industry, with their stocks being closely monitored by investors. American Airlines, based in the United States, is one of the largest airlines globally, while Air China is a major carrier in Asia. The two airlines have different market dynamics, with American Airlines being heavily impacted by domestic travel trends, while Air China's performance is closely tied to the growth of the Chinese economy. Investors carefully analyze the performance of these stocks to make informed investment decisions in the airline sector.
American Airlines or Air China?
When comparing American Airlines 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 American Airlines 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.
American Airlines 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. American Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 American Airlines P/E ratio at 8.92 and Air China's P/E ratio at -165.20. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. American Airlines P/B ratio is -1.90 while Air China's P/B ratio is 1.94.
Growth Investors:
Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, American Airlines has seen a 5-year revenue growth of -0.20%, while Air China's is -0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Airlines's ROE at -17.74% 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 $11.10 for American Airlines and $12.35 for Air China. Over the past year, American Airlines's prices ranged from $9.07 to $19.10, with a yearly change of 110.58%. Air China's prices fluctuated between $7.51 and $14.40, with a yearly change of 91.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.
