Delta vs Air Canada Which Is More Favorable?

Delta Airlines and Air Canada are two major players in the airline industry, each with their own strengths and weaknesses. Delta is one of the largest airlines in the world, known for its extensive route network and strong financial performance. On the other hand, Air Canada is the flag carrier of Canada, with a significant presence in both domestic and international markets. Investors looking to invest in airline stocks may consider the performance and potential growth of Delta and Air Canada before making a decision.

Delta or Air Canada?

When comparing Delta and Air Canada, 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 Delta and Air Canada.

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. Delta has a dividend yield of 1.04%, while Air Canada has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Delta reports a 5-year dividend growth of 4.56% year and a payout ratio of 0.00%. On the other hand, Air Canada 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 Delta P/E ratio at 20.69 and Air Canada's P/E ratio at 3.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Delta P/B ratio is 1.26 while Air Canada's P/B ratio is 7.11.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Delta has seen a 5-year revenue growth of 0.17%, while Air Canada's is -0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Delta's ROE at 6.26% and Air Canada's ROE at 316.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹117.55 for Delta and $16.11 for Air Canada. Over the past year, Delta's prices ranged from ₹104.45 to ₹159.80, with a yearly change of 52.99%. Air Canada's prices fluctuated between $10.16 and $17.09, with a yearly change of 68.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.