UNITED vs Air China Which Offers More Value?

United Airlines and Air China are both prominent players in the airline industry, each offering a unique value proposition to investors. United, based in the United States, has a strong domestic presence and extensive international routes, appealing to investors seeking stability and growth potential. On the other hand, Air China, the flag carrier of China, benefits from the booming Asian market and strategic partnerships, making it an attractive option for investors looking to capitalize on the growing demand for air travel in the region.

UNITED or Air China?

When comparing UNITED and Air China, 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 China.

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 4.77%, while Air China 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 China reports a 5-year dividend growth of 0.00% year and a payout ratio of -1443.32%.

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 49.06 and Air China's P/E ratio at -3020.29. 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 1.34 while Air China's P/B ratio is 35.41.

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 China's is -0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UNITED's ROE at 2.56% and Air China's ROE at -1.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥761.00 for UNITED and $11.72 for Air China. Over the past year, UNITED's prices ranged from ¥670.00 to ¥953.00, with a yearly change of 42.24%. Air China's prices fluctuated between $7.51 and $14.40, with a yearly change of 91.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.