Allegiant Travel vs American Airlines

Allegiant Travel and American Airlines are two prominent players in the airline industry, each offering unique opportunities for investors. Allegiant Travel, known for its focus on low-cost leisure travel, has seen steady growth in recent years. On the other hand, American Airlines, one of the largest airlines in the world, has faced challenges including fluctuating fuel prices and intense competition. Both stocks present different investment opportunities, with Allegiant offering potential for growth and American Airlines providing stability and value.

Allegiant Travel or American Airlines?

When comparing Allegiant Travel and American 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 Allegiant Travel and American 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. Allegiant Travel has a dividend yield of 3.04%, while American Airlines has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Allegiant Travel reports a 5-year dividend growth of 0.00% year and a payout ratio of -294.95%. On the other hand, American 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 Allegiant Travel P/E ratio at -70.74 and American Airlines's P/E ratio at -65.32. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Allegiant Travel P/B ratio is 0.79 while American Airlines's P/B ratio is -1.67.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Allegiant Travel has seen a 5-year revenue growth of 0.34%, while American Airlines's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Allegiant Travel's ROE at -1.50% and American Airlines's ROE at 2.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $57.85 for Allegiant Travel and $12.00 for American Airlines. Over the past year, Allegiant Travel's prices ranged from $36.09 to $85.91, with a yearly change of 138.04%. American Airlines's prices fluctuated between $9.07 and $16.15, with a yearly change of 78.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.