Asiana vs JetBlue Airways Which Is a Better Investment?

Asiana Airlines and JetBlue Airways are two well-known players in the aviation industry, each offering unique investment opportunities for prospective stockholders. Asiana, a major South Korean carrier, has faced financial challenges in recent years but continues to be a significant player in the Asian market. In contrast, JetBlue, a low-cost carrier based in the United States, has seen steady growth and profitability. Investors looking to diversify their portfolio in the airline sector may find value in comparing the performance and potential of Asiana versus JetBlue Airways stocks.

Asiana or JetBlue Airways?

When comparing Asiana and JetBlue 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 JetBlue 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 JetBlue Airways 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, JetBlue Airways 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 8.35 and JetBlue Airways's P/E ratio at -2.86. 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 JetBlue Airways's P/B ratio is 0.92.

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 JetBlue Airways's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Asiana's ROE at 12.72% and JetBlue Airways's ROE at -30.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿8.35 for Asiana and $7.03 for JetBlue Airways. Over the past year, Asiana's prices ranged from ฿6.35 to ฿11.20, with a yearly change of 76.38%. JetBlue Airways's prices fluctuated between $4.50 and $8.07, with a yearly change of 79.33%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.