China Airlines vs Air China

China Airlines and Air China are two major airlines in China, each with their own unique strengths and weaknesses. China Airlines is the national carrier of Taiwan and has a strong reputation for high-quality service and reliability. On the other hand, Air China is the flag carrier of the People's Republic of China and has a larger fleet and route network. Both airlines have their own stocks listed on various exchanges, making them attractive investment options for those looking to capitalize on the growing aviation market in China.

China Airlines or Air China?

When comparing China Airlines and Air China, 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 China.

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 3.3%, while Air China 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 33.94%. On the other hand, Air China reports a 5-year dividend growth of 0.00% year and a payout ratio of -1858.37%.

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 14.19 and Air China's P/E ratio at -3014.58. 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 1.66 while Air China's P/B ratio is 31.14.

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 China's is -0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with China Airlines's ROE at 11.77% and Air China's ROE at -1.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$20.80 for China Airlines and $9.64 for Air China. Over the past year, China Airlines's prices ranged from NT$18.65 to NT$25.20, with a yearly change of 35.12%. Air China's prices fluctuated between $7.51 and $14.40, with a yearly change of 91.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.