Reviewing Singapore Airlines (OTCMKTS:SINGF) & Japan Airlines (OTCMKTS:JAPSY)

Singapore Airlines (OTCMKTS:SINGF) and Japan Airlines (OTCMKTS:JAPSY) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Institutional & Insider Ownership

6.1% of Singapore Airlines shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Singapore Airlines and Japan Airlines”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Singapore Airlines	N/A	N/A	N/A	$0.17	31.81
Japan Airlines	$13.37 billion	0.60	$860.68 million	$0.85	10.98

Japan Airlines has higher revenue and earnings than Singapore Airlines. Japan Airlines is trading at a lower price-to-earnings ratio than Singapore Airlines, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Singapore Airlines and Japan Airlines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Singapore Airlines	N/A	N/A	N/A
Japan Airlines	5.68%	9.09%	3.77%

Analyst Recommendations

This is a summary of recent ratings for Singapore Airlines and Japan Airlines, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Singapore Airlines	0	0	0	0	0.00
Japan Airlines	0	1	0	1	3.00

Dividends

Singapore Airlines pays an annual dividend of $0.21 per share and has a dividend yield of 3.9%. Japan Airlines pays an annual dividend of $0.18 per share and has a dividend yield of 1.9%. Singapore Airlines pays out 122.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Japan Airlines pays out 21.2% of its earnings in the form of a dividend.

Summary

Japan Airlines beats Singapore Airlines on 8 of the 11 factors compared between the two stocks.

About Singapore Airlines

Singapore Airlines Limited, together with subsidiaries, provides passenger and cargo air transportation services under the Singapore Airlines and Scoot brands in East Asia, the Americas, Europe, Southwest Pacific, West Asia, and Africa. It operates through The Full-Service Carrier, The Low-Cost Carrier, and Engineering Services segments. The company also offers engineering services, pilot training services, air charters, and tour wholesaling and related services; and refurbishes aircraft galleys. In addition, it provides aircraft maintenance services, including technical and non-technical handling at the airport; maintenance, repair, and overhaul of aircraft and cabin components/systems; repair and overhaul of hydromechanical equipment; aviation insurance; and airframe maintenance and overhaul services, as well as manufactures aircraft cabin parts and tooling for the aerospace industry. Further, the company offers marketing and supporting portal services for the air cargo industry, as well as travel-related retail services. Additionally, it provides travel booking and related services through an online portal. As of March 31, 2024, the company operated a fleet of 200 aircrafts, including 142 passenger aircrafts, 51 passenger aircrafts, and seven freighters. Singapore Airlines Limited was founded in 1947 and is based in Singapore.

About Japan Airlines

Japan Airlines Co., Ltd., together with its subsidiaries, provides scheduled and non-scheduled air transport services in Japan, Asia, Oceania, North America, and Europe. The company operates through Air Transportation and Other segments. It offers passenger, ground handling, cargo and mail handling, and maintenance services. The company is also involved in the aerial work and other related business; airport peripheral business; and sale of travel package tours. As of March 31, 2023, it operated a fleet of 224 aircraft. The company was formerly known as Japan Airlines International Co., Ltd. and changed its name to Japan Airlines Co., Ltd. in April 2011. The company was founded in 1951 and is headquartered in Tokyo, Japan.