China Airlines vs ANA Which Offers More Value?

China Airlines and ANA are two major players in the airline industry, both based in Asia and known for their extensive networks and high-quality services. When it comes to stocks, investors often compare the performance of these two companies to make informed decisions. China Airlines, based in Taiwan, has a strong presence in the region and offers potential for growth. On the other hand, ANA, based in Japan, is known for its reliability and stability in the market. Both airlines have their strengths and weaknesses, making them interesting options for investors looking to diversify their portfolios in the aviation sector.

China Airlines or ANA?

When comparing China Airlines and ANA, 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 ANA.

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 2.67%, while ANA has a dividend yield of 0.01%. 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, ANA 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 15.13 and ANA's P/E ratio at 2.08. 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 1.91 while ANA's P/B ratio is 0.29.

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 ANA's is -0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with China Airlines's ROE at 13.45% and ANA's ROE at 14.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$25.65 for China Airlines and $3.87 for ANA. Over the past year, China Airlines's prices ranged from NT$19.05 to NT$27.20, with a yearly change of 42.78%. ANA's prices fluctuated between $3.51 and $4.62, with a yearly change of 31.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.