American Airlines vs FedEx Which Is More Attractive?

American Airlines and FedEx are two major players in the transportation industry, but they cater to different markets. American Airlines primarily operates in the passenger airline sector, while FedEx focuses on logistics and package delivery. Both companies have seen fluctuations in their stock prices in recent years due to various factors such as fuel costs, competition, and economic conditions. Investors interested in these stocks should carefully consider the opportunities and risks associated with each company before making any investment decisions.

American Airlines or FedEx?

When comparing American Airlines and FedEx, 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 FedEx.

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 FedEx has a dividend yield of 2.3%. 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, FedEx reports a 5-year dividend growth of 15.01% year and a payout ratio of 31.63%.

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 33.85 and FedEx's P/E ratio at 17.69. 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 -1.92 while FedEx's P/B ratio is 2.63.

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 FedEx's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Airlines's ROE at -5.42% and FedEx's ROE at 15.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.89 for American Airlines and $288.70 for FedEx. Over the past year, American Airlines's prices ranged from $9.07 to $16.15, with a yearly change of 78.06%. FedEx's prices fluctuated between $234.45 and $313.84, with a yearly change of 33.86%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.