Investors are currently assessing two mid-cap transportation companies: Flughafen Wien and Japan Airlines. Both firms exhibit unique strengths and weaknesses, prompting a closer examination of their dividends, earnings, profitability, valuation, institutional ownership, and associated risks.
Dividend Analysis
A key factor for many investors is the dividend yield, and here, Japan Airlines outperforms Flughafen Wien. The former offers an annual dividend of $0.21 per share, translating to a dividend yield of 2.2%. In comparison, Flughafen Wien provides a smaller annual dividend of $0.29 per share, with a yield of 1.7%.
When examining payout ratios, Flughafen Wien distributes 40.3% of its earnings as dividends, while Japan Airlines pays out only 22.1%. This indicates that Japan Airlines maintains a stronger capacity to sustain its dividend payments over the long term, making it a more attractive option for dividend-focused investors.
Earnings and Valuation Insights
A comparison of financial performance reveals that Japan Airlines significantly outpaces Flughafen Wien in several key metrics. Japan Airlines reported gross revenue of $12.11 billion and net income of $706.45 million. In contrast, Flughafen Wien generated gross revenue of $1.14 billion with a net income of $234.01 million.
The earnings per share (EPS) for Japan Airlines stands at $0.95, with a price-to-earnings (P/E) ratio of 10.21. Flughafen Wien’s EPS is lower at $0.72, with a P/E ratio of 23.33. The lower P/E ratio for Japan Airlines suggests that it is comparatively more affordable than Flughafen Wien, offering potential value for investors.
Risk and Profitability Metrics
When considering risk, Flughafen Wien has a beta of -0.55, indicating that its stock price is 155% less volatile than the S&P 500. Japan Airlines, with a beta of 0.42, is 58% less volatile than the benchmark index. This data points to Flughafen Wien as a more stable investment option in terms of price fluctuations.
Profitability metrics further illustrate the differences between the two companies. Flughafen Wien boasts a net margin of 20.50%, while Japan Airlines shows a net margin of 6.48%. Return on equity for Flughafen Wien is 13.42%, surpassing Japan Airlines’ 12.66%. However, Japan Airlines manages a higher return on assets at 4.57% compared to Flughafen Wien’s 9.31%.
Analyst Recommendations
Current analyst evaluations, as per MarketBeat.com, indicate a clear preference for Japan Airlines over Flughafen Wien. Japan Airlines holds one “buy” rating and three “hold” ratings with a rating score of 3.00. Flughafen Wien, on the other hand, has no ratings above “hold,” reflecting a lack of confidence from analysts.
In summary, Japan Airlines surpasses Flughafen Wien in eight out of the thirteen factors analyzed. Investors may find Japan Airlines to be the more compelling investment choice due to its higher dividend yield, stronger financial performance, and positive analyst ratings.
Company Overviews
Flughafen Wien Aktiengesellschaft operates civil airports and related facilities in Austria, managing the Vienna airport among other segments. Their operations include airport management, handling and security services, retail and properties, and technical services. The company is based in Schwechat, Austria.
Japan Airlines Co., Ltd., headquartered in Tokyo, Japan, provides both scheduled and non-scheduled air transport services across various regions including Asia, Oceania, North America, and Europe. With a fleet of 224 aircraft as of March 31, 2023, Japan Airlines is engaged in passenger transport, cargo handling, and ground services.
As investors weigh their options, both companies present distinct investment opportunities, dependent on individual financial strategies and market outlooks.
