This TSX Airline Stock Has Better ROE Than Air Canada (TSX:AC)

Stocks of Air Canada (TSX: AC) have been trading actively throughout the COVID-19 led lockdowns. But there is one small cap aviation company that has outperformed Air Canada with its market fundamentals. Canadian holding company Chorus Aviation Inc. (TSX: CHR) operates in contract flights, offers maintenance, repair, and airplane leasing solutions. However, the company has not drawn as much investors’ attention as compared to mega carrier Air Canada.

Let us check out the stock movements of both these Canadian airlines:

 

Chorus Aviation Inc. (TSX: CHR)

Current CHR Stock Price: C$ 3.84

 

The carrier reaches its customers through its partners: Jazz Aviation LP (Jazz), Chorus Aviation Capital, and Voyageur. It operates through its business divisions of Regional Aviation Services and Regional Aircraft Leasing.

Stocks of the aircraft leaser have soared over 63 per cent in the last three months.

However, this airline stock has declined by over 50 per cent, after suffering losses due to the COVID-19 led market crash. Its current market cap is C$ 621.57 million.

The stock delivers a positive return-on-equity (ROE) of 10.96 per cent and a positive return-on-assets (ROA) of 2.21 per cent, as per TMX data. It has a current price-to-earnings ratio of 8.90, price-to-cashflow of 3.30 and debt-to-equity ratio of 3.32 (as on January 10). Its 50-day average volume is 1.13 million units.

In the third quarter of 2020, the company reported a net income of C$ 20.5 million, which decreased by C$ 3.7 million year-over-year due to the impact of COVID-19, compensated by a “change in unrealized foreign exchange of C$24.9 million.”

Air Canada (TSX: AC)

Current AC Stock Price: C$ 22.84

 

Stocks of the largest Canadian airline is gradually rebounding. Its scrips have recovered by almost 36 per cent in the last three months but down by over 55 per cent in the last one year.

Its present market capitalization stands at C$ 7.586 billion.

AC stock offers a negative ROE of -109.55 per cent and negative ROA of 11.44 per cent, according to the data on the TMX portal. Its present price-to-cashflow is 22.80, and its debt-to-equity ratio is 7.67.

The stocks’ 50-day average trading volume is 6.5 million units. It is among the most active stocks across the TSX and the TSXV and has been trending on TMX’s top volume list for the past few months.

In the third quarter of 2020, the airline recorded total revenues of C$ 757 million, a plunge of 86 per cent, compared to the third quarter of 2019.

Comment


Disclaimer

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK