Air France-KLM vs United Airlines Which Is More Lucrative?

Air France-KLM and United Airlines are two major players in the aviation industry, each offering its own unique strengths and weaknesses to investors. Air France-KLM, a European airline group, has faced challenges in recent years due to labor strikes and fluctuating fuel prices. On the other hand, United Airlines, a major US carrier, has shown resilience and growth amidst fierce competition. Both stocks offer potential opportunities for investors seeking exposure to the airline industry, but careful analysis of their financial performance and market trends is essential.

Air France-KLM or United Airlines?

When comparing Air France-KLM and United 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 United 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 United 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 37.23%. On the other hand, United 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 0.76 and United Airlines's P/E ratio at 10.85. 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 -0.13 while United Airlines's P/B ratio is 2.62.

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 United Airlines's is 0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air France-KLM's ROE at -5.17% and United Airlines's ROE at 27.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.83 for Air France-KLM and $90.60 for United Airlines. Over the past year, Air France-KLM's prices ranged from $0.77 to $1.65, with a yearly change of 114.29%. United Airlines's prices fluctuated between $37.02 and $93.33, with a yearly change of 152.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.