Icelandair vs Air Canada Which Is More Reliable?

Icelandair and Air Canada are two major players in the airline industry, each with their own unique strengths and weaknesses. Icelandair is known for its strong focus on the tourism industry, particularly as a gateway to Europe from North America. On the other hand, Air Canada is one of the largest airlines in North America, with a robust route network and strong brand recognition. Investors looking to compare the performance of these two stocks should consider factors such as market trends, financial performance, and future growth prospects.

Icelandair or Air Canada?

When comparing Icelandair 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 Icelandair 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. Icelandair 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. Icelandair 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 Icelandair P/E ratio at -13.75 and Air Canada's P/E ratio at 3.42. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Icelandair P/B ratio is 1.29 while Air Canada's P/B ratio is 2.82.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Icelandair has seen a 5-year revenue growth of -0.88%, while Air Canada's is -0.14%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Icelandair's ROE at -10.57% 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 kr1.23 for Icelandair and $17.22 for Air Canada. Over the past year, Icelandair's prices ranged from kr0.84 to kr1.54, with a yearly change of 84.21%. Air Canada's prices fluctuated between $10.16 and $17.81, with a yearly change of 75.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.