EVA Airways vs Japan Airlines Which Is a Better Investment?

EVA Airways and Japan Airlines are two major players in the airline industry, with both companies operating extensive networks domestically and internationally. Investors interested in the aviation sector may consider evaluating the financial performance and potential growth prospects of EVA Airways and Japan Airlines stocks. While EVA Airways is a leading Taiwanese airline known for its superior service and modern fleet, Japan Airlines is a prominent Japanese carrier with a strong presence in Asia and beyond. Analyzing key metrics such as revenue, profitability, and market share can help investors make informed decisions when comparing these two airline stocks.

EVA Airways or Japan Airlines?

When comparing EVA Airways 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 EVA Airways 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. EVA Airways has a dividend yield of 4.09%, while Japan 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, 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 EVA Airways P/E ratio at 9.00 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. EVA Airways P/B ratio is 2.04 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, EVA Airways has seen a 5-year revenue growth of 0.03%, while Japan Airlines's is 0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with EVA Airways's ROE at 24.76% 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 NT$43.80 for EVA Airways and $8.30 for Japan 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%. 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.