American Airlines vs Cathay Pacific Airways Which Is Superior?

American Airlines and Cathay Pacific Airways are two of the leading airlines in the industry, both offering international travel services to passengers around the world. While American Airlines is one of the largest airlines in the United States, Cathay Pacific Airways is a major player in the Asian market. Investors looking to capitalize on the airline industry may find these two stocks attractive options to consider. This comparison will delve into the performance, profitability, and overall outlook of American Airlines versus Cathay Pacific Airways stocks.

American Airlines or Cathay Pacific Airways?

When comparing American Airlines 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 American Airlines 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. American Airlines 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. American Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 American Airlines P/E ratio at 33.85 and Cathay Pacific Airways's P/E ratio at 33.35. 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 -1.92 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, American Airlines has seen a 5-year revenue growth of -0.16%, while Cathay Pacific Airways's is -0.88%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Airlines's ROE at -5.42% 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 $13.89 for American Airlines and $5.10 for Cathay Pacific Airways. Over the past year, American Airlines's prices ranged from $9.07 to $16.15, with a yearly change of 78.06%. Cathay Pacific Airways's prices fluctuated between $4.80 and $5.89, with a yearly change of 22.71%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.