EVA Airways vs United Airlines Which Is a Smarter Choice?

EVA Airways and United Airlines are two prominent players in the airline industry, each with its own strengths and challenges. EVA Airways, based in Taiwan, is known for its strong presence in the Asian market and exceptional service quality. On the other hand, United Airlines, a major American carrier, has a vast network and robust partnerships. Both stocks have been impacted by the COVID-19 pandemic but offer potential for growth as air travel resumes. Investors should carefully consider factors such as market trends, financial performance, and competition when evaluating the potential of these stocks.

EVA Airways or United Airlines?

When comparing EVA Airways and United 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 United 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 4.06%, while United 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, United 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 9.00 and United Airlines's P/E ratio at 11.33. 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 2.06 while United Airlines's P/B ratio is 2.74.

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 United Airlines's is 0.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with EVA Airways's ROE at 24.76% and United Airlines's ROE at 27.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$43.70 for EVA Airways and $94.92 for United 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%. United Airlines's prices fluctuated between $37.02 and $105.09, with a yearly change of 183.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.