Finnair vs Singapore Airlines Which Is a Smarter Choice?

Finnair and Singapore Airlines are two leading airlines in their respective regions, Europe and Asia. Both companies have established strong reputations for providing high-quality service and maintaining reliable operations. Investors interested in the airline industry may find these stocks appealing due to their stable performance and potential for growth. However, each company faces unique challenges such as competitive market conditions and fluctuating fuel prices. By comparing Finnair and Singapore Airlines stocks, investors can gain insight into the strengths and weaknesses of each company to make informed investment decisions.

Finnair or Singapore Airlines?

When comparing Finnair and Singapore 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 Finnair and Singapore 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. Finnair has a dividend yield of -%, while Singapore Airlines has a dividend yield of 4.27%. 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, Singapore Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 42.90%.

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 4.63 and Singapore Airlines's P/E ratio at 11.96. 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 0.83 while Singapore Airlines's P/B ratio is 2.30.

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 Singapore Airlines's is -0.69%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Finnair's ROE at 17.95% and Singapore Airlines's ROE at 17.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €2.33 for Finnair and $9.44 for Singapore Airlines. Over the past year, Finnair's prices ranged from €2.08 to €3.14, with a yearly change of 50.48%. Singapore Airlines's prices fluctuated between $8.63 and $10.99, with a yearly change of 27.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.