American Airlines vs Finnair Which Is a Smarter Choice?

American Airlines and Finnair are two major players in the airline industry, each offering unique investment opportunities for those looking to dabble in the stock market. American Airlines, a well-established carrier with a strong presence in the US market, has weathered turbulent times and shown resilience in the face of challenges. On the other hand, Finnair, the national carrier of Finland, has carved a niche for itself with its focus on the European and Asian markets. Investors may find value in comparing the performance and potential of these two companies when considering their investment strategies.

American Airlines or Finnair?

When comparing American Airlines and Finnair, 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 Finnair.

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 Finnair has a dividend yield of -%. 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, Finnair 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 American Airlines P/E ratio at 41.81 and Finnair's P/E ratio at 4.73. 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 -2.37 while Finnair's P/B ratio is 0.85.

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 Finnair's is -0.55%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Airlines's ROE at -5.42% and Finnair's ROE at 17.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $17.37 for American Airlines and €2.34 for Finnair. Over the past year, American Airlines's prices ranged from $9.07 to $18.20, with a yearly change of 100.72%. Finnair's prices fluctuated between €2.08 and €3.14, with a yearly change of 50.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.