EVA Airways vs American Airlines Which Performs Better?

EVA Airways and American Airlines are two major players in the airline industry, each with distinct strengths and weaknesses. EVA Airways, based in Taiwan, has a strong presence in the Asian market and is known for its exceptional service and reliability. American Airlines, on the other hand, is a longstanding company with a vast route network and strong brand recognition globally. Both companies have faced challenges due to the COVID-19 pandemic, but their stock performance and future prospects differ significantly. In this comparison, we will analyze the financial performance, market position, and potential growth opportunities of EVA Airways and American Airlines stocks.

EVA Airways or American Airlines?

When comparing EVA Airways and American 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 EVA Airways and American 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. EVA Airways has a dividend yield of 3.92%, while American Airlines 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 0.00%. On the other hand, American Airlines 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 9.37 and American Airlines's P/E ratio at 41.81. 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 2.13 while American Airlines's P/B ratio is -2.37.

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 American Airlines's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with EVA Airways's ROE at 24.76% and American Airlines's ROE at -5.42%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$45.50 for EVA Airways and $17.37 for American Airlines. Over the past year, EVA Airways's prices ranged from NT$29.95 to NT$48.25, with a yearly change of 61.10%. American Airlines's prices fluctuated between $9.07 and $18.20, with a yearly change of 100.72%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.