Alaska Air vs UNITED Which Is a Smarter Choice?

Alaska Air Group Inc. (ALK) and United Airlines Holdings Inc. (UAL) are two major players in the aviation industry, offering domestic and international flights to millions of passengers each year. Both companies have seen fluctuations in their stock prices in recent years, influenced by factors such as fuel costs, competition, and changes in consumer demand. Investors often compare the performance of Alaska Air and United stocks to determine which company may offer better returns and stability in the long term.

Alaska Air or UNITED?

When comparing Alaska Air and UNITED, 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 UNITED.

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 UNITED has a dividend yield of 3.03%. 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, UNITED reports a 5-year dividend growth of 6.43% 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 Alaska Air P/E ratio at 24.02 and UNITED's P/E ratio at 51.06. 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 1.73 while UNITED's P/B ratio is 1.39.

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 0.22%, while UNITED's is -0.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alaska Air's ROE at 7.67% and UNITED's ROE at 2.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $60.03 for Alaska Air and ¥789.00 for UNITED. Over the past year, Alaska Air's prices ranged from $32.62 to $63.89, with a yearly change of 95.86%. UNITED's prices fluctuated between ¥670.00 and ¥953.00, with a yearly change of 42.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.