Qantas Airways vs American Airlines Which Offers More Value?

Qantas Airways and American Airlines are two of the biggest players in the airline industry, offering flights to destinations around the world. Both companies are publicly traded on the stock market, giving investors the opportunity to own a piece of these industry giants. Qantas Airways is based in Australia and American Airlines is based in the United States. Investors must carefully consider factors such as market performance, financial health, and industry trends when comparing these two airline stocks.

Qantas Airways or American Airlines?

When comparing Qantas Airways and American 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 Qantas Airways and American 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. Qantas Airways has a dividend yield of -%, while American Airlines 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, American 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 Qantas Airways P/E ratio at 29.30 and American Airlines's P/E ratio at 41.81. 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 246.79 while American Airlines's P/B ratio is -2.37.

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 American Airlines's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Qantas Airways's ROE at 3005.56% and American Airlines's ROE at -5.42%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $28.76 for Qantas Airways and $17.37 for American Airlines. Over the past year, Qantas Airways's prices ranged from $15.83 to $30.30, with a yearly change of 91.41%. American Airlines's prices fluctuated between $9.07 and $18.20, with a yearly change of 100.72%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.