American Airlines vs Allegiant Travel

American Airlines and Allegiant Travel are two major players in the airline industry, each offering unique opportunities for investors. American Airlines, one of the largest airlines in the world, has a strong presence in both domestic and international markets. On the other hand, Allegiant Travel is known for its focus on leisure travel and low-cost offerings. Both companies have faced challenges in recent years, but each presents its own investment potential based on their business strategies and market positions.

American Airlines or Allegiant Travel?

When comparing American Airlines and Allegiant Travel, 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 American Airlines and Allegiant Travel.

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. American Airlines has a dividend yield of -%, while Allegiant Travel has a dividend yield of 3.04%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. American Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Allegiant Travel reports a 5-year dividend growth of 0.00% year and a payout ratio of -294.95%.

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 American Airlines P/E ratio at -65.32 and Allegiant Travel's P/E ratio at -70.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. American Airlines P/B ratio is -1.67 while Allegiant Travel's P/B ratio is 0.79.

Growth Investors:

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

Retail Investors:

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