ANA vs American Airlines Which Is a Better Investment?

ANA and American Airlines are two of the largest airlines in the world, each with a strong presence in the global aviation market. Both companies have experienced fluctuations in their stock prices over the years, influenced by various factors such as fuel prices, competition, and overall market conditions. Investors often compare the performance of these two airline stocks to determine which may be a more lucrative investment opportunity. In this analysis, we will delve into the financial standings and potential growth prospects of ANA and American Airlines to provide insights for potential investors.

ANA or American Airlines?

When comparing ANA and American Airlines, 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 American Airlines.

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 American Airlines 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, American Airlines 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 2.08 and American Airlines's P/E ratio at 40.45. 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 0.29 while American Airlines's P/B ratio is -2.29.

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3.87 for ANA and $16.81 for American Airlines. Over the past year, ANA's prices ranged from $3.51 to $4.62, with a yearly change of 31.62%. American Airlines's prices fluctuated between $9.07 and $18.20, with a yearly change of 100.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.