American Airlines vs Asiana Which Is Stronger?

American Airlines (AAL) and Asiana Airlines (020560.KS) are two major players in the airline industry, each with its own unique strengths and challenges. American Airlines, a well-established American carrier, has a long history of providing reliable service and maintaining a strong market presence. On the other hand, Asiana Airlines, a South Korean airline, has also made a name for itself with its focus on customer service and international routes. Both airlines face competition and market fluctuations, making their stocks an interesting investment opportunity for those looking to diversify their portfolio in the airline industry. Let's dive into a comparison of American Airlines vs Asiana stocks to analyze their performance and potential for growth.

American Airlines or Asiana?

When comparing American Airlines and Asiana, 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 Asiana.

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 Asiana has a dividend yield of 8.57%. 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, Asiana reports a 5-year dividend growth of 13.94% year and a payout ratio of 99.80%.

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 40.45 and Asiana's P/E ratio at 8.35. 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 -2.29 while Asiana's P/B ratio is 1.06.

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 Asiana's is -0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Airlines's ROE at -5.42% and Asiana's ROE at 12.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $16.81 for American Airlines and ฿8.35 for Asiana. Over the past year, American Airlines's prices ranged from $9.07 to $18.20, with a yearly change of 100.66%. Asiana's prices fluctuated between ฿6.35 and ฿11.20, with a yearly change of 76.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.