American Airlines vs Icelandair Which Outperforms?

American Airlines and Icelandair are two major players in the airline industry, each with its own unique characteristics and financial standing. American Airlines is one of the largest airlines in the world, known for its extensive route network and frequent flier program. On the other hand, Icelandair is a smaller airline based in Iceland, offering flights to and from Europe and North America. Both companies have experienced fluctuations in their stock prices due to various factors, including fuel costs, competition, and global economic conditions. Investors interested in the airline industry may want to closely monitor the performance of both American Airlines and Icelandair stocks to make informed investment decisions.

American Airlines or Icelandair?

When comparing American Airlines and Icelandair, 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 Icelandair.

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 Icelandair 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, Icelandair 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 33.85 and Icelandair's P/E ratio at -12.39. 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 Icelandair's P/B ratio is 1.16.

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 Icelandair's is -0.88%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Airlines's ROE at -5.42% and Icelandair's ROE at -10.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.89 for American Airlines and kr1.15 for Icelandair. Over the past year, American Airlines's prices ranged from $9.07 to $16.15, with a yearly change of 78.06%. Icelandair's prices fluctuated between kr0.84 and kr1.54, with a yearly change of 84.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.