Flughafen Wien and Japan Airlines are mid-cap transportation companies that have recently attracted investor attention. This article compares both firms based on their dividends, earnings, profitability, valuation, and risk factors, providing insights for potential investors.
Dividend Strength Analysis
When it comes to dividends, Flughafen Wien offers an annual dividend of $0.29 per share, resulting in a dividend yield of 1.7%. In contrast, Japan Airlines distributes an annual dividend of $0.21 per share, yielding 2.2%. The payout ratio for Flughafen Wien stands at 40.3%, while Japan Airlines has a more modest payout ratio of 22.1%. These figures suggest that both companies can sustain their dividend payments, but Japan Airlines emerges as the stronger option due to its higher yield and lower payout ratio.
Earnings and Valuation Insights
A closer examination of earnings reveals significant differences between the two airlines. Flughafen Wien reported a gross revenue of $1.14 billion, with a net income of $234.01 million and earnings per share of $0.72. Its price-to-earnings ratio is 23.33. Meanwhile, Japan Airlines boasts gross revenue of $12.11 billion, with a net income of $706.45 million and earnings per share of $0.95. The airline’s price-to-earnings ratio is notably lower at 10.21, indicating that it is currently a more affordable investment compared to Flughafen Wien.
Risk and Profitability Comparison
In terms of risk, Flughafen Wien has a beta of -0.55, suggesting its share price is significantly less volatile than the S&P 500 Index. Japan Airlines shows a beta of 0.42, indicating its share price is also less volatile, but to a lesser extent. Profitability metrics further highlight the differences between the companies. Flughafen Wien enjoys a net margin of 20.50%, along with a return on equity of 13.42% and return on assets of 9.31%. Japan Airlines, in contrast, has a net margin of 6.48%, a return on equity of 12.66%, and a return on assets of 4.57%.
Analyst Recommendations
Analyst recommendations further illustrate the competitive landscape. According to MarketBeat.com, Flughafen Wien currently holds no buy ratings, while Japan Airlines has garnered one buy rating and three hold ratings, resulting in an average rating score of 3.00. This suggests a more favorable outlook for Japan Airlines among analysts.
Company Overviews
Flughafen Wien Aktiengesellschaft operates in the construction and management of civil airports in Austria, primarily focusing on the Vienna International Airport. The company is involved in various segments, including airport operations, handling and security services, retail and properties, and technical services. Headquartered in Schwechat, Austria, it plays a critical role in the region’s air transport infrastructure.
Japan Airlines Co., Ltd. is a major player in the air transport sector, providing scheduled and non-scheduled services across Japan and internationally. The company operates through its Air Transportation and Other segments, offering a wide range of services, including passenger and cargo transport. Founded in 1951, Japan Airlines is based in Tokyo and operates a fleet of 224 aircraft as of March 31, 2023.
In summary, Japan Airlines outperforms Flughafen Wien on several key financial metrics, including dividend yield, earnings, and analyst ratings. Investors looking for exposure in the transportation sector may find Japan Airlines to be the more attractive option between the two.
