Cathay Pacific Airways vs Delta Which Offers More Value?

Cathay Pacific Airways and Delta Air Lines are two major players in the airline industry, each with its own unique strengths and challenges. While Cathay Pacific is based in Hong Kong and focuses on the Asian market, Delta is a leading American airline with a strong presence in both domestic and international routes. Investors interested in the airline sector often compare the performance of these two companies' stocks to assess their potential for growth and profitability in the market.

Cathay Pacific Airways or Delta?

When comparing Cathay Pacific Airways and Delta, 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 Delta.

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 0.75%, while Delta has a dividend yield of 1.03%. 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, Delta reports a 5-year dividend growth of 4.56% 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 41.13 and Delta's P/E ratio at 20.82. 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 6.12 while Delta's P/B ratio is 1.27.

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 -0.90%, while Delta's is 0.17%. 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 Delta's ROE at 6.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.15 for Cathay Pacific Airways and ₹120.10 for Delta. Over the past year, Cathay Pacific Airways's prices ranged from $4.84 to $6.34, with a yearly change of 30.99%. Delta's prices fluctuated between ₹104.45 and ₹159.80, with a yearly change of 52.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.