Asiana vs Japan Airlines Which Outperforms?

Asiana Airlines and Japan Airlines are two major players in the East Asian aviation industry, both competing for market share and investor attention. Asiana Airlines, based in South Korea, has faced challenges in recent years including financial difficulties and a decrease in demand due to various factors. On the other hand, Japan Airlines, a leading carrier in Japan, has seen more stable financial performance and has been expanding its operations regionally and internationally. Investors interested in the aviation sector may consider comparing the stocks of these two companies to make informed decisions.

Asiana or Japan Airlines?

When comparing Asiana and Japan 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 and Japan 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 has a dividend yield of 8.57%, while Japan Airlines 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 99.80%. On the other hand, Japan Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 37.52%.

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 Japan Airlines's P/E ratio at 6.45. 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 Japan Airlines's P/B ratio is 0.61.

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 Japan Airlines's is 0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Asiana's ROE at 12.72% and Japan Airlines's ROE at 9.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿8.35 for Asiana and $8.30 for Japan Airlines. Over the past year, Asiana's prices ranged from ฿6.35 to ฿11.20, with a yearly change of 76.38%. Japan Airlines's prices fluctuated between $7.27 and $10.17, with a yearly change of 39.89%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.