UNITED vs Air Canada Which Is More Favorable?

United Airlines Holdings Inc. and Air Canada are two major players in the airline industry, each with its own strengths and weaknesses. United Airlines is a well-established American airline with a strong presence in both domestic and international markets. On the other hand, Air Canada is the largest airline in Canada and has a significant market share in the country. Investors looking to invest in the airline industry may find comparing and analyzing these two stocks helpful in making informed decisions.

UNITED or Air Canada?

When comparing UNITED 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 UNITED 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. UNITED has a dividend yield of 2.97%, while Air Canada has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. UNITED reports a 5-year dividend growth of 6.43% 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 UNITED P/E ratio at 51.89 and Air Canada's P/E ratio at 3.51. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. UNITED P/B ratio is 1.42 while Air Canada's P/B ratio is 2.90.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, UNITED has seen a 5-year revenue growth of -0.46%, while Air Canada's is -0.14%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UNITED's ROE at 2.56% and Air Canada's ROE at 177.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥801.00 for UNITED and $17.25 for Air Canada. Over the past year, UNITED's prices ranged from ¥670.00 to ¥953.00, with a yearly change of 42.24%. Air Canada's prices fluctuated between $10.16 and $18.56, with a yearly change of 82.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.