American Airlines vs Copa Which Should You Buy?

American Airlines is a major player in the aviation industry, while Copa Holdings is a leading airline in Latin America. Both companies have faced challenges in the past, including fluctuating fuel prices and economic downturns. However, American Airlines has a larger market presence and more diverse route network, while Copa has a strong focus on the Latin American market. Investors may consider various factors, such as financial performance and growth prospects, when comparing the stocks of these two airlines.

American Airlines or Copa?

When comparing American Airlines and Copa, 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 Copa.

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 Copa has a dividend yield of 5.65%. 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, Copa reports a 5-year dividend growth of 0.00% year and a payout ratio of 19.98%.

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 33.49 and Copa's P/E ratio at 6.22. 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 -1.90 while Copa's P/B ratio is 1.87.

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 Copa's is 0.30%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Airlines's ROE at -5.42% and Copa's ROE at 31.39%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.97 for American Airlines and $98.60 for Copa. Over the past year, American Airlines's prices ranged from $9.07 to $16.15, with a yearly change of 78.06%. Copa's prices fluctuated between $80.01 and $114.00, with a yearly change of 42.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.