Qantas Airways vs Air Canada Which Outperforms?

Qantas Airways and Air Canada are two of the leading airlines in their respective countries, Australia and Canada. Both companies have faced challenges due to the COVID-19 pandemic, but have also shown resilience in adapting to the changing market conditions. Investors looking to invest in airline stocks may want to consider the potential growth opportunities and risks associated with each company. In this analysis, we will compare the performance of Qantas Airways and Air Canada stocks, examining their financial health, market positioning, and growth prospects.

Qantas Airways or Air Canada?

When comparing Qantas Airways 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 Qantas Airways 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. Qantas Airways 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. Qantas Airways 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 Qantas Airways P/E ratio at 27.82 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. Qantas Airways P/B ratio is 234.11 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, Qantas Airways has seen a 5-year revenue growth of -0.77%, while Air Canada's is -0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Qantas Airways's ROE at 3005.56% 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 $28.13 for Qantas Airways and $16.11 for Air Canada. Over the past year, Qantas Airways's prices ranged from $15.83 to $28.16, with a yearly change of 77.89%. 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.