Asiana Airlines vs Air China Which Is More Promising?

Asiana Airlines and Air China are two major players in the competitive airline industry, each offering unique advantages and challenges for investors. Asiana Airlines, based in South Korea, has a strong presence in the industry and is known for its excellent customer service and safety record. On the other hand, Air China, China's flag carrier, has a vast network and benefits from the growing demand for air travel in the region. Both stocks offer potential for growth and profitability, but investors should carefully consider their financial performance and market trends before making investment decisions.

Asiana Airlines or Air China?

When comparing Asiana Airlines and Air China, 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 Asiana Airlines and Air China.

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. Asiana Airlines has a dividend yield of -%, while Air China has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Asiana Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 182.07%. On the other hand, Air China reports a 5-year dividend growth of 0.00% year and a payout ratio of -1443.32%.

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 Asiana Airlines P/E ratio at 8.08 and Air China's P/E ratio at -3116.49. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Asiana Airlines P/B ratio is 1.37 while Air China's P/B ratio is 36.62.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Asiana Airlines has seen a 5-year revenue growth of -0.02%, while Air China's is -0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Asiana Airlines's ROE at 17.20% and Air China's ROE at -1.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩10010.00 for Asiana Airlines and $12.30 for Air China. Over the past year, Asiana Airlines's prices ranged from ₩8780.00 to ₩14610.00, with a yearly change of 66.40%. Air China's prices fluctuated between $7.51 and $13.41, with a yearly change of 78.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.