American Airlines vs ANA Which Offers More Value?

American Airlines Group Inc. and All Nippon Airways Co., Ltd. are two major players in the airline industry. American Airlines is one of the largest airlines in the world, while ANA is the largest airline in Japan. Both companies have seen fluctuations in their stock prices due to various factors such as fuel prices, competition, and global economic conditions. Investors looking to invest in airline stocks may consider the potential risks and rewards of investing in American Airlines vs. ANA stocks.

American Airlines or ANA?

When comparing American Airlines and ANA, 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 ANA.

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 ANA has a dividend yield of 0.01%. 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, ANA 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 American Airlines P/E ratio at 41.21 and ANA's P/E ratio at 2.12. 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 -2.33 while ANA's P/B ratio is 0.30.

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 -0.16%, while ANA's is -0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Airlines's ROE at -5.42% and ANA's ROE at 14.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $17.23 for American Airlines and $3.78 for ANA. Over the past year, American Airlines's prices ranged from $9.07 to $18.20, with a yearly change of 100.66%. ANA's prices fluctuated between $3.51 and $4.62, with a yearly change of 31.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.