Japan Airlines vs United Airlines Which Is More Promising?

Japan Airlines (JAL) and United Airlines are two major players in the airline industry, each with its own unique strengths and weaknesses. JAL is known for its strong presence in the Asian market, while United Airlines is a major player in the North American market. Both companies have seen fluctuations in their stock prices due to various factors such as fuel prices, labor disputes, and global economic conditions. Investors looking to diversify their portfolios may consider comparing the stocks of these two airlines to make an informed decision.

Japan Airlines or United Airlines?

When comparing Japan Airlines and United 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 United 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 United Airlines 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, United Airlines 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 United Airlines's P/E ratio at 10.65. 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 United Airlines's P/B ratio is 2.57.

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 United Airlines's is 0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Japan Airlines's ROE at 9.66% and United Airlines's ROE at 27.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.87 for Japan Airlines and $87.34 for United Airlines. Over the past year, Japan Airlines's prices ranged from $7.27 to $10.17, with a yearly change of 39.89%. United Airlines's prices fluctuated between $37.02 and $89.60, with a yearly change of 142.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.