ANA vs Cathay Pacific Airways Which Performs Better?

ANA and Cathay Pacific Airways are two of the leading airline companies in the Asia Pacific region. Both companies are known for their strong brand identities and excellent customer service. Investors interested in the airline industry may be considering investing in either ANA or Cathay Pacific Airways stocks. This comparison will analyze the financial performance, market position, and future outlook of both companies to help investors make an informed decision about which stock may be a better investment opportunity.

ANA or Cathay Pacific Airways?

When comparing ANA 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 ANA 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. ANA has a dividend yield of 0.01%, while Cathay Pacific Airways has a dividend yield of 0.99%. 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, 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 ANA P/E ratio at 2.07 and Cathay Pacific Airways's P/E ratio at 33.89. 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 Cathay Pacific Airways's P/B ratio is 5.04.

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 Cathay Pacific Airways's is -0.88%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ANA's ROE at 14.65% 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 $3.63 for ANA and $5.10 for Cathay Pacific Airways. Over the past year, ANA's prices ranged from $3.51 to $4.62, with a yearly change of 31.62%. Cathay Pacific Airways's prices fluctuated between $4.81 and $5.89, with a yearly change of 22.45%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.