Flughafen Wien (OTCMKTS:VIAAY) and Japan Airlines (OTCMKTS:JAPSY) are both mid-cap companies within the transportation sector, prompting investors to evaluate which stock offers greater potential. This analysis focuses on their dividend strengths, earnings, profitability, valuation, institutional ownership, and risk factors to help gauge their investment appeal.
Dividend Strength and Payout Ratios
In terms of dividends, Flughafen Wien offers an annual payment of $0.29 per share, resulting in a dividend yield of 1.7%. Conversely, Japan Airlines pays $0.21 per share with a higher dividend yield of 2.2%. A notable distinction lies in their payout ratios: Flughafen Wien distributes 40.3% of its earnings, while Japan Airlines pays out 22.1%. This suggests Japan Airlines is the more favorable choice for dividend investors, as it combines a higher yield with a lower payout ratio, indicating a more sustainable dividend policy.
Financial Performance and Valuation Metrics
When evaluating revenue and earnings, Japan Airlines outperforms Flughafen Wien significantly. Japan Airlines reported gross revenue of $12.11 billion and net income of $706.45 million, translating to earnings per share of $0.95. In contrast, Flughafen Wien generated gross revenue of $1.14 billion, with a net income of $234.01 million and earnings per share of $0.72.
Valuation metrics further emphasize Japan Airlines’ attractiveness. It currently trades at a price-to-earnings ratio of 10.21, compared to Flughafen Wien’s 23.33. This lower ratio suggests Japan Airlines is more affordably priced in relation to its earnings, potentially offering investors a better entry point.
Risk Factors and Profitability
Assessing risk, Flughafen Wien demonstrates a beta of -0.55, indicating that its share price is 155% less volatile than the S&P 500. Japan Airlines has a beta of 0.42, showing it is 58% less volatile. While both stocks exhibit lower volatility compared to the broader market, Flughafen Wien’s negative beta indicates it may behave differently during market fluctuations.
Profitability metrics reveal Flughafen Wien’s stronger performance with a net margin of 20.50%, compared to Japan Airlines’ 6.48%. Furthermore, Flughafen Wien boasts a return on equity of 13.42% and return on assets of 9.31%, surpassing Japan Airlines’ return on equity of 12.66% and return on assets of 4.57%.
Analyst Recommendations and Market Outlook
Current analyst ratings reflect a more favorable outlook for Japan Airlines. According to MarketBeat.com, Japan Airlines holds one “buy” rating and three “hold” ratings, resulting in a rating score of 3.00. Conversely, Flughafen Wien has not received any buy or hold ratings, indicating a lack of analyst enthusiasm.
In summary, Japan Airlines outshines Flughafen Wien in several key aspects, leading in revenue, earnings, and dividend yield while presenting a more attractive valuation. Investors looking for growth and stability may find Japan Airlines to be the superior choice in this analysis.
Company Profiles
Flughafen Wien Aktiengesellschaft operates through several segments, including Airport, Handling & Security Services, Retail & Properties, and others, primarily managing the Vienna airport in Schwechat, Austria. It provides essential services for passenger and baggage handling, security, and retail operations, contributing to a comprehensive airport experience.
Japan Airlines Co., Ltd. offers a wide range of air transport services across Japan, Asia, Oceania, North America, and Europe. With a fleet of 224 aircraft as of March 31, 2023, the company engages in passenger and cargo handling, ground services, and related businesses, positioning itself as a major player in the global airline industry.
Investors should consider these factors carefully when evaluating investment opportunities in Flughafen Wien and Japan Airlines.
