Asiana vs Air Canada

Asiana Airlines and Air Canada, two prominent players in the aviation industry, have attracted the attention of investors looking to capitalize on the potential growth in the sector. Asiana, based in South Korea, is known for its strong presence in the Asian market, while Air Canada is a major player in the North American market. Both airlines have faced challenges in recent years, including the impact of the COVID-19 pandemic on their operations. Investors are closely monitoring their performance and financial health to determine the best investment opportunities.

Asiana or Air Canada?

When comparing Asiana and Air Canada, 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 and Air Canada.

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 has a dividend yield of 8.27%, while Air Canada has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Asiana reports a 5-year dividend growth of 13.94% year and a payout ratio of 60.82%. On the other hand, Air Canada 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 P/E ratio at 9.62 and Air Canada's P/E ratio at 3.49. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Asiana P/B ratio is 1.09 while Air Canada's P/B ratio is 5.28.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Asiana has seen a 5-year revenue growth of -0.01%, while Air Canada's is -0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Asiana's ROE at 11.59% and Air Canada's ROE at 219.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿8.70 for Asiana and $12.45 for Air Canada. Over the past year, Asiana's prices ranged from ฿5.95 to ฿11.20, with a yearly change of 88.24%. Air Canada's prices fluctuated between $10.16 and $14.91, with a yearly change of 46.75%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.