China Airlines vs Asiana

China Airlines and Asiana Airlines are two of the major players in the Asian airline industry. Both companies have seen fluctuations in their stock prices in recent years due to various factors such as global economic conditions, industry competition, and company-specific news. Investors closely monitor the performance of these stocks as they represent key players in the growing aviation market in Asia. Understanding the trends and differences between China Airlines and Asiana stocks can provide valuable insights for investors looking to capitalize on opportunities in the airline sector.

China Airlines or Asiana?

When comparing China Airlines and Asiana, 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 Asiana.

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 Asiana has a dividend yield of 8.27%. 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, Asiana reports a 5-year dividend growth of 13.94% year and a payout ratio of 60.82%.

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 Asiana's P/E ratio at 9.62. 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 Asiana's P/B ratio is 1.09.

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 Asiana's is -0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with China Airlines's ROE at 11.77% and Asiana's ROE at 11.59%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$20.80 for China Airlines and ฿8.70 for Asiana. Over the past year, China Airlines's prices ranged from NT$18.65 to NT$25.20, with a yearly change of 35.12%. Asiana's prices fluctuated between ฿5.95 and ฿11.20, with a yearly change of 88.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.