ANA vs United Airlines Which Is a Better Investment?

ANA and United Airlines are two major players in the airline industry, each with its own strengths and weaknesses. While ANA is the largest airline in Japan and has a strong reputation for excellent service, United Airlines is one of the largest carriers in the United States with a vast route network. Both airlines have faced challenges in recent years due to the COVID-19 pandemic, but they have also demonstrated resilience and adaptability. Investors looking to purchase stocks in the airline industry may consider the performance and long-term prospects of ANA and United Airlines.

ANA or United Airlines?

When comparing ANA and United 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 United 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 United 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, United 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 United Airlines's P/E ratio at 11.33. 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 United Airlines's P/B ratio is 2.74.

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 United Airlines's is 0.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ANA's ROE at 14.65% and United Airlines's ROE at 27.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3.87 for ANA and $94.92 for United Airlines. Over the past year, ANA's prices ranged from $3.51 to $4.62, with a yearly change of 31.62%. United Airlines's prices fluctuated between $37.02 and $105.09, with a yearly change of 183.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.