China Airlines vs American Airlines Which Is More Lucrative?

China Airlines and American Airlines are two of the largest and most prominent players in the global aviation industry. Both companies operate numerous domestic and international flights, catering to millions of passengers each year. In terms of their stocks, investors closely monitor the performance of China Airlines and American Airlines due to their significant impact on the market. The stocks of these airlines are influenced by various factors such as fuel prices, economic conditions, and competition within the industry. Let's dive deeper into the comparison of China Airlines vs American Airlines stocks to understand their financial performance and potential for investment.

China Airlines or American Airlines?

When comparing China Airlines 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 China Airlines 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. China Airlines has a dividend yield of 2.62%, while American Airlines 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, 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 China Airlines P/E ratio at 15.42 and American Airlines's P/E ratio at 41.21. 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 American Airlines's P/B ratio is -2.33.

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 American Airlines's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with China Airlines's ROE at 13.45% 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 NT$26.05 for China Airlines and $17.23 for American Airlines. Over the past year, China Airlines's prices ranged from NT$19.05 to NT$27.20, with a yearly change of 42.78%. American Airlines's prices fluctuated between $9.07 and $18.20, with a yearly change of 100.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.