Asiana vs United Airlines Which Is More Promising?

Asiana Airlines and United Airlines are two prominent players in the airline industry, each with their own distinct strengths and weaknesses. Asiana Airlines, based in South Korea, operates a comprehensive network of domestic and international flights, catering to a wide range of passengers. On the other hand, United Airlines, one of the largest airlines in the world, has a strong presence in the North American market and offers a wide array of services. Both companies have faced challenges in recent years, including economic downturns and the impact of the COVID-19 pandemic. This comparison will delve into the financial performance and stock outlook of Asiana vs United Airlines, shedding light on the factors influencing their stock prices and investment potential.

Asiana or United Airlines?

When comparing Asiana and United 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 United 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 8.47%, while United 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, United Airlines 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 8.44 and United Airlines's P/E ratio at 11.43. 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 1.08 while United Airlines's P/B ratio is 2.76.

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 United Airlines's is 0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Asiana's ROE at 12.72% and United Airlines's ROE at 27.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿8.45 for Asiana and $95.87 for United Airlines. Over the past year, Asiana's prices ranged from ฿6.35 to ฿11.20, with a yearly change of 76.38%. United Airlines's prices fluctuated between $37.02 and $105.09, with a yearly change of 183.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.