China Airlines vs Air Canada Which Performs Better?

China Airlines and Air Canada are two major players in the airline industry with stocks that are closely monitored by investors. China Airlines, based in Taiwan, has a strong presence in the Asian market and has seen significant growth in recent years. On the other hand, Air Canada, one of the largest carriers in North America, has faced challenges due to the impact of the COVID-19 pandemic on the travel industry. Investors are closely watching the performance of these two stocks to assess their potential for growth and profitability.

China Airlines or Air Canada?

When comparing China Airlines and Air Canada, 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 China Airlines and Air Canada.

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. China Airlines has a dividend yield of 2.62%, while Air Canada has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. China Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 43.80%. On the other hand, Air Canada 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 China Airlines P/E ratio at 15.42 and Air Canada's P/E ratio at 3.57. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. China Airlines P/B ratio is 1.95 while Air Canada's P/B ratio is 2.94.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, China Airlines has seen a 5-year revenue growth of 0.02%, while Air Canada's is -0.14%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with China Airlines's ROE at 13.45% and Air Canada's ROE at 177.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$26.05 for China Airlines and $17.61 for Air Canada. Over the past year, China Airlines's prices ranged from NT$19.05 to NT$27.20, with a yearly change of 42.78%. Air Canada's prices fluctuated between $10.16 and $18.56, with a yearly change of 82.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.