Swoop vs Air Canada Which Is a Smarter Choice?

Swoop and Air Canada are two prominent players in the Canadian airline industry, each with their own unique offerings and market positions. Swoop, a low-cost carrier owned by WestJet, was launched in 2018 and focuses on providing affordable travel options for budget-conscious travelers. On the other hand, Air Canada is the country's largest airline, offering a wider range of services and destinations. Investors interested in the airline sector may consider comparing the performance and potential of these two companies in order to make informed investment decisions.

Swoop or Air Canada?

When comparing Swoop 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 Swoop 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. Swoop 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. Swoop 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 Swoop P/E ratio at -1.14 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. Swoop P/B ratio is 0.75 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, Swoop has seen a 5-year revenue growth of -0.98%, while Air Canada's is -0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Swoop's ROE at -64.57% 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 A$0.21 for Swoop and $16.11 for Air Canada. Over the past year, Swoop's prices ranged from A$0.16 to A$0.28, with a yearly change of 71.88%. 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.