Finnair vs Air Canada Which Is More Promising?

Finnair and Air Canada are both major players in the airline industry, with a rich history and significant global presence. While Finnair is the flag carrier of Finland and focuses on providing high-quality service and connecting Europe with Asia, Air Canada is Canada's largest airline and a key player in North American aviation. Both companies have experienced fluctuations in their stock prices in response to various factors such as fuel prices, economic conditions, and competition. Investors interested in the airline industry should carefully consider the unique strengths and challenges of each company before making investment decisions.

Finnair or Air Canada?

When comparing Finnair and Air Canada, 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 Finnair and Air Canada.

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. Finnair has a dividend yield of -%, while Air Canada has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Finnair reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Air Canada 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 Finnair P/E ratio at 4.49 and Air Canada's P/E ratio at 3.51. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Finnair P/B ratio is 0.81 while Air Canada's P/B ratio is 2.89.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Finnair has seen a 5-year revenue growth of -0.55%, while Air Canada's is -0.14%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Finnair's ROE at 17.95% and Air Canada's ROE at 177.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €2.31 for Finnair and $17.25 for Air Canada. Over the past year, Finnair's prices ranged from €2.08 to €3.14, with a yearly change of 50.48%. Air Canada's prices fluctuated between $10.16 and $18.56, with a yearly change of 82.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.