Hainan Airlines vs Air Canada Which Is More Profitable?

Hainan Airlines and Air Canada are two prominent players in the aviation industry, each representing different markets and regions. Hainan Airlines is a Chinese airline that has seen substantial growth in recent years, benefiting from the booming travel demand in Asia. On the other hand, Air Canada is a major player in the North American market with strong brand recognition and a diverse route network. Both airlines have faced challenges due to the COVID-19 pandemic, but their stocks have shown resilience amid the uncertain market conditions.

Hainan Airlines or Air Canada?

When comparing Hainan Airlines 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 Hainan Airlines 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. Hainan Airlines 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. Hainan Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 126.28%. 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 Hainan Airlines P/E ratio at 52.18 and Air Canada's P/E ratio at 3.57. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Hainan Airlines P/B ratio is 19.05 while Air Canada's P/B ratio is 2.94.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Hainan Airlines has seen a 5-year revenue growth of -0.70%, while Air Canada's is -0.14%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hainan Airlines's ROE at 58.91% 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 ¥1.91 for Hainan Airlines and $17.61 for Air Canada. Over the past year, Hainan Airlines's prices ranged from ¥1.00 to ¥2.44, with a yearly change of 144.00%. 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.