Asiana Airlines vs American Airlines Which Is a Smarter Choice?

Asiana Airlines and American Airlines are two prominent players in the airline industry, each with its own unique strengths and challenges. Asiana Airlines, based in South Korea, has a strong presence in the Asian market and offers a diverse range of international travel options. On the other hand, American Airlines, a major US carrier, has a vast network of routes and a loyal customer base. Both stocks have been affected by the ongoing global pandemic, but investors are closely watching their performance and potential for growth in the recovery period.

Asiana Airlines or American Airlines?

When comparing Asiana Airlines 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 Asiana Airlines 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. Asiana Airlines has a dividend yield of -%, while American Airlines 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, 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 Asiana Airlines P/E ratio at 8.08 and American Airlines's P/E ratio at 41.21. 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 American Airlines's P/B ratio is -2.33.

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 American Airlines's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Asiana Airlines's ROE at 17.20% 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 ₩10010.00 for Asiana Airlines and $17.23 for American Airlines. Over the past year, Asiana Airlines's prices ranged from ₩8780.00 to ₩14610.00, with a yearly change of 66.40%. 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.