Investors are increasingly weighing their options between Flughafen Wien (OTCMKTS:VIAAY) and Japan Airlines (OTCMKTS:JAPSY), two mid-cap transportation companies with distinct financial profiles. Both firms offer unique investment opportunities, but Japan Airlines currently stands out due to its stronger financial metrics and more attractive dividend yield.
Dividend Comparison
Flughafen Wien provides an annual dividend of $0.29 per share, resulting in a dividend yield of 1.7%. In contrast, Japan Airlines offers a lower annual dividend of $0.21 per share, translating to a higher yield of 2.2%. The payout ratios reflect their earnings distribution: Flughafen Wien pays out 40.3% of its earnings as dividends, while Japan Airlines retains a more conservative 22.1%. This positions Japan Airlines as the more appealing choice for dividend-focused investors.
Financial Performance and Valuation
Examining the financial metrics reveals that Japan Airlines significantly outperforms Flughafen Wien in several key areas. Japan Airlines reported a gross revenue of $12.11 billion, compared to Flughafen Wien’s $1.14 billion. Additionally, Japan Airlines boasts a net income of $706.45 million versus Flughafen Wien’s $234.01 million.
The price-to-earnings ratio further illustrates the value proposition; Japan Airlines trades at 10.21 while Flughafen Wien sits at 23.33. This indicates that Japan Airlines is currently more affordable, making it an attractive option for potential investors.
Risk is also a factor to consider. Flughafen Wien has a beta of -0.55, indicating a level of volatility significantly lower than the S&P 500, while Japan Airlines has a beta of 0.42, signifying it is 58% less volatile than the market.
Profitability metrics tell a similar story. Flughafen Wien’s net margin stands at 20.50%, with a return on equity of 13.42% and return on assets of 9.31%. Conversely, Japan Airlines has a net margin of 6.48%, a return on equity of 12.66%, and a return on assets of 4.57%.
Analysts have also weighed in, with current ratings indicating a preference for Japan Airlines. According to MarketBeat.com, Japan Airlines holds a rating score of 3.00, with one buy rating and three hold ratings, while Flughafen Wien has not received any buy or hold ratings.
Flughafen Wien, headquartered in Schwechat, Austria, operates the Vienna airport and offers a range of services including passenger and baggage handling, security controls, and retail operations. The company is structured into five segments: Airport, Handling & Security Services, Retail & Properties, Malta, and Other, supporting both its core airport operations and broader business ventures.
In contrast, Japan Airlines, based in Tokyo, Japan, provides comprehensive air transport services across Japan, Asia, Oceania, North America, and Europe. The company operates a fleet of 224 aircraft and engages in various ancillary services such as ground handling and travel package sales.
In summary, Japan Airlines outperforms Flughafen Wien across multiple financial metrics, including revenue, profitability, and dividend yield. Investors may find Japan Airlines to be the superior option for those looking to enter the transportation sector.
As of March 31, 2023, both companies demonstrate strong potential, but Japan Airlines presents itself as a more compelling investment opportunity based on the current analysis.
