Asiana vs Icelandair Which Is More Attractive?

Asiana and Icelandair are two prominent airlines in their respective regions, with distinct strengths and weaknesses in the global aviation industry. Asiana Airlines, based in South Korea, has a strong market presence and a diverse route network, while Icelandair, based in Iceland, is known for its unique stopover program and focus on connecting North America and Europe. Both companies have faced challenges in recent years, including financial struggles and changes in consumer preferences. In this analysis, we will compare the stocks of Asiana and Icelandair, examining their performance, financial health, and growth potential in the dynamic airline market.

Asiana or Icelandair?

When comparing Asiana and Icelandair, 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 Icelandair.

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 8.13%, while Icelandair 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, Icelandair 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 9.79 and Icelandair's P/E ratio at -12.39. 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 1.11 while Icelandair's P/B ratio is 1.16.

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 Icelandair's is -0.88%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Asiana's ROE at 11.59% and Icelandair's ROE at -10.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿8.80 for Asiana and kr1.15 for Icelandair. Over the past year, Asiana's prices ranged from ฿5.95 to ฿11.20, with a yearly change of 88.24%. Icelandair's prices fluctuated between kr0.84 and kr1.54, with a yearly change of 84.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.