Delta vs Japan Airlines Which Is More Attractive?

Delta Air Lines and Japan Airlines are two prominent players in the global aviation industry. Delta, based in the United States, is one of the largest airlines in the world, while Japan Airlines is a major carrier in Asia. Both companies have seen fluctuations in their stock prices due to various factors such as market conditions, competition, and economic trends. Investors looking to invest in airline stocks should carefully analyze the performance and prospects of Delta and Japan Airlines to make informed investment decisions.

Delta or Japan Airlines?

When comparing Delta and Japan 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 Delta and Japan 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. Delta has a dividend yield of 1.03%, while Japan Airlines 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, Japan Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 37.52%.

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 20.82 and Japan Airlines's P/E ratio at 6.45. 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 1.27 while Japan Airlines's P/B ratio is 0.61.

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 Japan Airlines's is 0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Delta's ROE at 6.26% and Japan Airlines's ROE at 9.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹120.10 for Delta and $8.30 for Japan Airlines. Over the past year, Delta's prices ranged from ₹104.45 to ₹159.80, with a yearly change of 52.99%. Japan Airlines's prices fluctuated between $7.27 and $10.17, with a yearly change of 39.89%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.