UNITED vs Asiana Which Offers More Value?

United Airlines and Asiana Airlines are two major players in the aviation industry, both offering international and domestic flights to passengers around the world. When it comes to their stocks, United Airlines has been a longstanding and stable choice for investors, with a strong track record of performance. On the other hand, Asiana Airlines has faced some challenges in recent years, leading to potential opportunities for investors looking for growth potential. This comparison will explore the similarities and differences between United and Asiana stocks, helping investors make informed decisions in the competitive airline industry.

UNITED or Asiana?

When comparing UNITED and Asiana, 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 Asiana.

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 2.99%, while Asiana has a dividend yield of 9.23%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. UNITED reports a 5-year dividend growth of -12.94% year and a payout ratio of 0.00%. On the other hand, Asiana reports a 5-year dividend growth of 23.55% year and a payout ratio of 95.96%.

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 51.64 and Asiana's P/E ratio at 7.49. 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 1.41 while Asiana's P/B ratio is 0.98.

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 Asiana's is -0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UNITED's ROE at 2.56% and Asiana's ROE at 13.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥800.00 for UNITED and ฿7.55 for Asiana. Over the past year, UNITED's prices ranged from ¥670.00 to ¥936.00, with a yearly change of 39.70%. Asiana's prices fluctuated between ฿6.40 and ฿11.20, with a yearly change of 75.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.