CAR vs SJ Which Should You Buy?

When it comes to investing in the transportation sector, two popular options to consider are CAR (Avis Budget Group) and SJ (Scandinavian Airlines). CAR is a leading rental car company with a global presence, while SJ is a major airline serving Scandinavia and other international destinations. Both companies operate in the competitive travel industry and are subject to economic fluctuations and consumer demand. Investors should carefully consider the risks and potential rewards of investing in these stocks before making any decisions.

CAR or SJ?

When comparing CAR and SJ, 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 CAR and SJ.

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. CAR has a dividend yield of 1.83%, while SJ has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CAR reports a 5-year dividend growth of 7.68% year and a payout ratio of 98.63%. On the other hand, SJ 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 CAR P/E ratio at 60.09 and SJ's P/E ratio at -129.88. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CAR P/B ratio is 5.21 while SJ's P/B ratio is 4.37.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CAR has seen a 5-year revenue growth of 0.42%, while SJ's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CAR's ROE at 8.54% and SJ's ROE at -3.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$39.51 for CAR and ₹41.80 for SJ. Over the past year, CAR's prices ranged from A$26.79 to A$40.15, with a yearly change of 49.87%. SJ's prices fluctuated between ₹41.80 and ₹46.20, with a yearly change of 10.53%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.