Alaska Air vs United Airlines Which Is More Profitable?

Alaska Air and United Airlines are two prominent players in the competitive airline industry, each offering unique investment opportunities for shareholders. Alaska Air, known for its strong operational performance and customer service, has been a top performer in recent years. On the other hand, United Airlines has faced challenges with its financial performance and reputation. By comparing the two stocks, investors can analyze key metrics such as revenue growth, profitability, and market share to make informed decisions about their investment portfolios.

Alaska Air or United Airlines?

When comparing Alaska Air 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 Alaska Air 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. Alaska Air 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. Alaska Air reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Alaska Air P/E ratio at 24.85 and United Airlines's P/E ratio at 11.43. 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 1.79 while United Airlines's P/B ratio is 2.76.

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 Airlines's is 0.07%. 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 Airlines's ROE at 27.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $63.10 for Alaska Air and $95.87 for United Airlines. Over the past year, Alaska Air's prices ranged from $32.62 to $65.62, with a yearly change of 101.16%. United Airlines's prices fluctuated between $37.02 and $105.09, with a yearly change of 183.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.