Japan Airlines vs Air Canada Which Is More Attractive?

Japan Airlines and Air Canada are two prominent airline companies with a significant presence in the aviation industry. Both companies have experienced fluctuations in their stock prices over the years due to various internal and external factors affecting the airline industry. Investors interested in these stocks may consider factors such as market trends, financial performance, and strategic initiatives of the companies to make informed investment decisions. This comparison aims to provide insights into the stock performances of Japan Airlines and Air Canada for potential investors.

Japan Airlines or Air Canada?

When comparing Japan 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 Japan 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. Japan 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. Japan Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 37.52%. 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 Japan Airlines P/E ratio at 6.12 and Air Canada's P/E ratio at 3.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Japan Airlines P/B ratio is 0.58 while Air Canada's P/B ratio is 7.11.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Japan Airlines has seen a 5-year revenue growth of 0.61%, while Air Canada's is -0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Japan Airlines's ROE at 9.66% and Air Canada's ROE at 316.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.87 for Japan Airlines and $16.11 for Air Canada. Over the past year, Japan Airlines's prices ranged from $7.27 to $10.17, with a yearly change of 39.89%. Air Canada's prices fluctuated between $10.16 and $17.09, with a yearly change of 68.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.