UNITED vs China Airlines Which Is More Profitable?

United Airlines and China Airlines are two major players in the global aviation industry, representing the United States and Taiwan respectively. Both stocks have seen fluctuations in recent years due to various economic and geopolitical factors. United Airlines has a strong presence in the US market and is known for its extensive route network and loyal customer base. On the other hand, China Airlines has been expanding its operations in the Asia-Pacific region and has attracted investors with its growth potential. In this comparison, we will analyze the performance and prospects of United Airlines and China Airlines stocks to help investors make informed decisions.

UNITED or China Airlines?

When comparing UNITED and China 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 UNITED and China 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. UNITED has a dividend yield of 3.0%, while China Airlines has a dividend yield of 2.67%. 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, China Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 43.80%.

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 51.38 and China Airlines's P/E ratio at 15.13. 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 1.40 while China Airlines's P/B ratio is 1.91.

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 China Airlines's is 0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UNITED's ROE at 2.56% and China Airlines's ROE at 13.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥798.00 for UNITED and NT$25.65 for China Airlines. Over the past year, UNITED's prices ranged from ¥670.00 to ¥953.00, with a yearly change of 42.24%. China Airlines's prices fluctuated between NT$19.05 and NT$27.20, with a yearly change of 42.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.