Cathay Pacific Airways vs American Airlines Which Outperforms?

Cathay Pacific Airways and American Airlines are two major players in the airline industry, each with their own unique strengths and weaknesses. Cathay Pacific is a Hong Kong-based airline known for its luxurious services and strong presence in the Asian market. American Airlines, on the other hand, is a US-based carrier with a vast network and loyal customer base. Investors looking to invest in airline stocks must consider various factors such as market performance, financial stability, and future growth potential when comparing these two companies.

Cathay Pacific Airways or American Airlines?

When comparing Cathay Pacific Airways and American 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 Cathay Pacific Airways and American 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. Cathay Pacific Airways has a dividend yield of 1.01%, while American Airlines has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cathay Pacific Airways reports a 5-year dividend growth of 0.00% year and a payout ratio of 37.85%. On the other hand, American 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 Cathay Pacific Airways P/E ratio at 33.35 and American Airlines's P/E ratio at 33.85. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Cathay Pacific Airways P/B ratio is 4.96 while American Airlines's P/B ratio is -1.92.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Cathay Pacific Airways has seen a 5-year revenue growth of -0.88%, while American Airlines's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cathay Pacific Airways's ROE at 15.11% and American Airlines's ROE at -5.42%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.10 for Cathay Pacific Airways and $13.89 for American Airlines. Over the past year, Cathay Pacific Airways's prices ranged from $4.80 to $5.89, with a yearly change of 22.71%. American Airlines's prices fluctuated between $9.07 and $16.15, with a yearly change of 78.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.