American Airlines vs Qantas Airways Which Offers More Value?

American Airlines and Qantas Airways are two major players in the aviation industry, with both companies offering airline services across the globe. Investors looking to dive into the airline sector have the option to consider stocks from these two companies. American Airlines, headquartered in Texas, is one of the largest airlines in the US, while Qantas Airways, based in Australia, is the flag carrier airline of the country. Both stocks have their own strengths and weaknesses, making them intriguing options for investors seeking exposure to the airline industry.

American Airlines or Qantas Airways?

When comparing American Airlines and Qantas 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 Qantas 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 Qantas Airways 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, Qantas Airways 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 33.01 and Qantas Airways's P/E ratio at 27.33. 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 -1.87 while Qantas Airways's P/B ratio is 230.34.

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 Qantas Airways's is -0.77%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Airlines's ROE at -5.42% and Qantas Airways's ROE at 3005.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.68 for American Airlines and $27.71 for Qantas Airways. Over the past year, American Airlines's prices ranged from $9.07 to $16.15, with a yearly change of 78.06%. Qantas Airways's prices fluctuated between $15.83 and $28.16, with a yearly change of 77.89%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.