Alaska Air vs Unite Which Is a Better Investment?

Alaska Air Group Inc. and United Airlines Holdings Inc. are two major players in the airline industry, with each company offering unique investment opportunities for shareholders. Alaska Air Group Inc. is known for its strong presence in Alaska and the West Coast, while United Airlines Holdings Inc. is one of the largest airlines in the world, with a global network of routes. Both companies have experienced fluctuations in their stock prices, making them interesting options for investors looking to capitalize on the ups and downs of the aviation market.

Alaska Air or Unite?

When comparing Alaska Air and Unite, 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 Alaska Air and Unite.

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. Alaska Air has a dividend yield of -%, while Unite has a dividend yield of 4.15%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alaska Air reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Unite reports a 5-year dividend growth of 6.11% year and a payout ratio of 43.01%.

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 Alaska Air P/E ratio at 10.79 and Unite's P/E ratio at 14.10. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alaska Air P/B ratio is 1.46 while Unite's P/B ratio is 0.89.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alaska Air has seen a 5-year revenue growth of 0.21%, while Unite's is 0.43%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alaska Air's ROE at 14.43% and Unite's ROE at 6.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $50.90 for Alaska Air and £863.50 for Unite. Over the past year, Alaska Air's prices ranged from $32.00 to $52.19, with a yearly change of 63.08%. Unite's prices fluctuated between £845.50 and £1069.00, with a yearly change of 26.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.