ANA vs Japan Airlines Which Should You Buy?

Both ANA (All Nippon Airways) and Japan Airlines are flag carriers of Japan and major players in the aviation industry. With strong brand recognition and large market shares, these two companies have been competing for dominance in the Japanese aviation market for decades. Investors are constantly monitoring their stocks, assessing factors such as profitability, market share, and growth potential to make informed decisions. This analysis will delve into the performance of ANA and Japan Airlines stocks, and provide insights into their financial standings and future outlook.

ANA or Japan Airlines?

When comparing ANA and Japan 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 Japan 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 Japan 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, Japan Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 37.52%.

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 Japan Airlines's P/E ratio at 6.49. 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 Japan Airlines's P/B ratio is 0.62.

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 Japan Airlines's is 0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ANA's ROE at 14.65% and Japan Airlines's ROE at 9.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3.98 for ANA and $8.45 for Japan Airlines. Over the past year, ANA's prices ranged from $3.51 to $4.62, with a yearly change of 31.62%. Japan Airlines's prices fluctuated between $7.27 and $10.17, with a yearly change of 39.89%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.