EVA Airways vs Cathay Pacific Airways Which Outperforms?

EVA Airways and Cathay Pacific Airways are two leading airlines in the aviation industry, both based in Asia. Investors looking to capitalize on the growth potential of the airline sector may consider comparing their stock performance. EVA Airways, a Taiwanese carrier, has shown resilience in the face of economic challenges, while Cathay Pacific, a Hong Kong-based airline, has faced turbulent times due to various factors. Analyzing their financials, market positioning, and industry trends can help investors make informed decisions in the competitive aviation market.

EVA Airways or Cathay Pacific Airways?

When comparing EVA Airways and Cathay Pacific Airways, 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 Cathay Pacific Airways.

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 4.54%, while Cathay Pacific Airways has a dividend yield of 1.01%. 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, Cathay Pacific Airways reports a 5-year dividend growth of 0.00% year and a payout ratio of 37.85%.

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 8.96 and Cathay Pacific Airways's P/E ratio at 33.35. 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 2.00 while Cathay Pacific Airways's P/B ratio is 4.96.

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 Cathay Pacific Airways's is -0.88%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with EVA Airways's ROE at 22.88% and Cathay Pacific Airways's ROE at 15.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$39.00 for EVA Airways and $5.10 for Cathay Pacific Airways. Over the past year, EVA Airways's prices ranged from NT$29.20 to NT$39.85, with a yearly change of 36.47%. Cathay Pacific Airways's prices fluctuated between $4.80 and $5.89, with a yearly change of 22.71%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.