ANA vs Air Canada Which Is a Smarter Choice?

ANA Holdings Inc. and Air Canada are two major players in the airline industry, with both companies holding strong positions in their respective markets. ANA, based in Japan, has a reputation for exceptional service and reliability, while Air Canada is the largest airline in Canada. Both airlines have navigated the challenges of the COVID-19 pandemic and are looking towards recovery. Investors may be interested in comparing the performance of these two stocks to make informed decisions about their investments.

ANA or Air Canada?

When comparing ANA and Air Canada, 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 ANA and Air Canada.

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. ANA has a dividend yield of 0.01%, while Air Canada has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ANA reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Air Canada 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 ANA P/E ratio at 2.11 and Air Canada's P/E ratio at 3.52. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ANA P/B ratio is 0.30 while Air Canada's P/B ratio is 2.90.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ANA has seen a 5-year revenue growth of -0.37%, while Air Canada's is -0.14%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ANA's ROE at 14.65% and Air Canada's ROE at 177.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3.98 for ANA and $17.69 for Air Canada. Over the past year, ANA's prices ranged from $3.51 to $4.62, with a yearly change of 31.62%. Air Canada's prices fluctuated between $10.16 and $18.56, with a yearly change of 82.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.