EVA Airways vs Air China Which Should You Buy?

EVA Airways and Air China are two prominent airlines that operate in the competitive aviation industry. Both companies have their stocks publicly traded, offering investors the opportunity to participate in their growth and success. EVA Airways is known for its outstanding service and strong balance sheet, while Air China benefits from its strategic positioning in the growing Asian market. Understanding the strengths and weaknesses of each company's stock can help investors make informed decisions to maximize their investment potential.

EVA Airways or Air China?

When comparing EVA Airways and Air China, 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 China.

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 4.55%, while Air China 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 China reports a 5-year dividend growth of 0.00% year and a payout ratio of -1443.32%.

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 9.02 and Air China's P/E ratio at -3020.29. 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 1.99 while Air China's P/B ratio is 35.41.

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 China's is -0.03%. 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 China's ROE at -1.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$39.30 for EVA Airways and $11.72 for Air China. Over the past year, EVA Airways's prices ranged from NT$29.30 to NT$39.70, with a yearly change of 35.49%. Air China's prices fluctuated between $7.51 and $14.40, with a yearly change of 91.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.