Japan Airlines vs Singapore Airlines Which Is More Lucrative?

Japan Airlines and Singapore Airlines are two major players in the airline industry, both known for their exceptional service and strong brand reputation. When it comes to their stocks, investors are closely monitoring their performances as they navigate through the challenges brought about by the COVID-19 pandemic. Japan Airlines has been facing difficulties due to travel restrictions and decreased demand, while Singapore Airlines has been implementing cost-cutting measures to improve its financial health. Both airlines are striving to adapt to the changing market conditions and investors are closely watching how they will fare in the coming months.

Japan Airlines or Singapore Airlines?

When comparing Japan Airlines 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 Japan Airlines 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. Japan Airlines 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. Japan Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 37.52%. On the other hand, Singapore Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 29.86%.

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 Singapore Airlines's P/E ratio at 9.84. 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 Singapore Airlines's P/B ratio is 2.47.

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 Singapore Airlines's is -0.69%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Japan Airlines's ROE at 9.66% and Singapore Airlines's ROE at 23.54%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.87 for Japan Airlines and $9.38 for Singapore Airlines. Over the past year, Japan Airlines's prices ranged from $7.27 to $10.17, with a yearly change of 39.89%. 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.