Asiana vs Singapore Airlines Which Performs Better?

Asiana Airlines and Singapore Airlines are two well-known carriers in the aviation industry, competing in the lucrative Asian market. Asiana, based in South Korea, and Singapore Airlines, based in Singapore, both offer a range of services to passengers across the globe. In recent years, both companies have faced challenges such as fluctuating fuel prices and increased competition. Investors are closely monitoring their performance to determine which stock may offer better growth potential and stability in the long term.

Asiana or Singapore Airlines?

When comparing Asiana and Singapore 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 Singapore 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 Singapore Airlines has a dividend yield of 4.27%. 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, Singapore Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 42.90%.

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 Singapore Airlines's P/E ratio at 11.97. 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 Singapore Airlines's P/B ratio is 2.30.

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 Singapore Airlines's is -0.69%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Asiana's ROE at 12.72% and Singapore Airlines's ROE at 17.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿8.35 for Asiana and $9.44 for Singapore Airlines. Over the past year, Asiana's prices ranged from ฿6.35 to ฿11.20, with a yearly change of 76.38%. Singapore Airlines's prices fluctuated between $8.63 and $10.99, with a yearly change of 27.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.