EVA Airways vs Air Canada

EVA Airways and Air Canada are two prominent players in the airline industry, both operating in international markets. EVA Airways, based in Taiwan, has consistently shown strong financial performance and growth potential. On the other hand, Air Canada, as one of the largest airlines in Canada, has faced challenges in recent years but has shown resilience and adaptability. Investors interested in airline stocks may find opportunities in both companies, each offering unique advantages and risks in the ever-changing aviation market.

EVA Airways or Air Canada?

When comparing EVA Airways 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 EVA Airways 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. EVA Airways has a dividend yield of 4.96%, while Air Canada has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. EVA Airways reports a 5-year dividend growth of 35.04% year and a payout ratio of 18.14%. 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 EVA Airways P/E ratio at 8.29 and Air Canada's P/E ratio at 3.49. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. EVA Airways P/B ratio is 1.83 while Air Canada's P/B ratio is 5.28.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, EVA Airways has seen a 5-year revenue growth of 0.03%, while Air Canada's is -0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with EVA Airways's ROE at 22.88% and Air Canada's ROE at 219.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$36.35 for EVA Airways and $12.45 for Air Canada. Over the past year, EVA Airways's prices ranged from NT$25.90 to NT$39.35, with a yearly change of 51.93%. Air Canada's prices fluctuated between $10.16 and $14.91, with a yearly change of 46.75%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.