Asiana vs Cathay Pacific Airways Which Is More Profitable?

Asiana Airlines and Cathay Pacific Airways are two prominent airlines in the Asian market with their stocks attracting significant attention from investors. Asiana Airlines, based in South Korea, has faced financial challenges in recent years, leading to fluctuations in its stock price. On the other hand, Hong Kong-based Cathay Pacific has a more stable financial performance and a strong presence in the region. Investors are closely monitoring both airlines to evaluate their potential for long-term growth and profitability in the competitive aviation industry.

Asiana or Cathay Pacific Airways?

When comparing Asiana and Cathay Pacific Airways, 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 Cathay Pacific Airways.

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 8.57%, while Cathay Pacific Airways has a dividend yield of 0.75%. 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 99.80%. On the other hand, Cathay Pacific Airways reports a 5-year dividend growth of 0.00% year and a payout ratio of 37.85%.

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 8.35 and Cathay Pacific Airways's P/E ratio at 40.93. 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 1.06 while Cathay Pacific Airways's P/B ratio is 6.09.

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 Cathay Pacific Airways's is -0.90%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Asiana's ROE at 12.72% and Cathay Pacific Airways's ROE at 15.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿8.35 for Asiana and $6.15 for Cathay Pacific Airways. Over the past year, Asiana's prices ranged from ฿6.35 to ฿11.20, with a yearly change of 76.38%. Cathay Pacific Airways's prices fluctuated between $4.84 and $6.34, with a yearly change of 30.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.