China Airlines vs Delta

China Airlines and Delta Air Lines are two of the biggest players in the airline industry, each offering unique investment opportunities for shareholders. While China Airlines is the largest airline in Taiwan, Delta is one of the largest in the United States. Both companies have seen fluctuations in their stock prices over the years, with factors such as fuel prices, competition, and geopolitical tensions influencing their performance. Investors looking to diversify their portfolio may consider comparing the stocks of these two airlines for potential growth and stability.

China Airlines or Delta?

When comparing China Airlines and Delta, 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 Delta.

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 Delta has a dividend yield of 1.02%. 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, Delta reports a 5-year dividend growth of 4.56% 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 14.19 and Delta's P/E ratio at 16.54. 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 Delta's P/B ratio is 1.30.

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 Delta's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with China Airlines's ROE at 11.77% and Delta's ROE at 8.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$20.80 for China Airlines and ₹122.00 for Delta. Over the past year, China Airlines's prices ranged from NT$18.65 to NT$25.20, with a yearly change of 35.12%. Delta's prices fluctuated between ₹104.45 and ₹159.80, with a yearly change of 52.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.