Air France-KLM vs Delta Which Is More Attractive?

Air France-KLM and Delta Air Lines are two major players in the global aviation industry, with both companies operating as leaders in their respective markets. As such, investors often find themselves comparing the performance of their stocks in order to determine which presents the best investment opportunity. Air France-KLM, a European company, and Delta, a United States-based carrier, offer unique benefits and risks for investors to consider when evaluating their stock performance. This comparison will delve into the financial health, operating metrics, and future prospects of both companies to provide a comprehensive analysis for potential investors.

Air France-KLM or Delta?

When comparing Air France-KLM and Delta, 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 Delta.

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 Delta has a dividend yield of 1.04%. 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, Delta reports a 5-year dividend growth of 4.56% 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 Delta's P/E ratio at 20.69. 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 Delta's P/B ratio is 1.26.

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 Delta's is 0.17%. 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 Delta's ROE at 6.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.86 for Air France-KLM and ₹117.55 for Delta. Over the past year, Air France-KLM's prices ranged from $0.77 to $1.65, with a yearly change of 114.29%. Delta's prices fluctuated between ₹104.45 and ₹159.80, with a yearly change of 52.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.