Air France-KLM vs American Airlines Which Is More Attractive?

Air France-KLM and American Airlines are two major players in the aviation industry, with both companies operating globally and facing similar challenges such as fluctuating fuel prices and changing consumer demands. However, their stock performance has differed in recent years, with Air France-KLM experiencing volatility due to economic uncertainties in Europe, while American Airlines has shown more stability and growth potential in the competitive US market. Investors should carefully evaluate the financial health and strategic direction of each company before making investment decisions.

Air France-KLM or American Airlines?

When comparing Air France-KLM and American Airlines, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Air France-KLM and American Airlines.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Air France-KLM has a dividend yield of -%, while American Airlines has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Air France-KLM reports a 5-year dividend growth of 0.00% year and a payout ratio of 41.30%. On the other hand, American Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Air France-KLM P/E ratio at 0.86 and American Airlines's P/E ratio at 33.85. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Air France-KLM P/B ratio is -0.06 while American Airlines's P/B ratio is -1.92.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Air France-KLM has seen a 5-year revenue growth of 4.35%, while American Airlines's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air France-KLM's ROE at -9.39% and American Airlines's ROE at -5.42%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.86 for Air France-KLM and $13.89 for American Airlines. Over the past year, Air France-KLM's prices ranged from $0.77 to $1.65, with a yearly change of 114.29%. American Airlines's prices fluctuated between $9.07 and $16.15, with a yearly change of 78.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.