American Airlines vs Norwegian Air Shuttle Which Performs Better?

American Airlines Group Inc. and Norwegian Air Shuttle ASA are both prominent players in the airline industry, but they operate in different markets and have distinct business models. American Airlines is one of the largest airlines in the world, with a strong presence in the domestic and international markets. On the other hand, Norwegian Air Shuttle is a low-cost carrier based in Europe, known for its affordable fares and extensive network. Both stocks have seen fluctuations in recent years due to various factors affecting the industry. In this comparison, we will delve into the financial performance, market positioning, and outlook for both American Airlines and Norwegian Air Shuttle stocks.

American Airlines or Norwegian Air Shuttle?

When comparing American Airlines and Norwegian Air Shuttle, 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 Norwegian Air Shuttle.

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 Norwegian Air Shuttle 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, Norwegian Air Shuttle 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 40.45 and Norwegian Air Shuttle's P/E ratio at 6.20. 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 -2.29 while Norwegian Air Shuttle's P/B ratio is 1.51.

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 Norwegian Air Shuttle's is -1.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Airlines's ROE at -5.42% and Norwegian Air Shuttle's ROE at 28.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $16.81 for American Airlines and $1.00 for Norwegian Air Shuttle. Over the past year, American Airlines's prices ranged from $9.07 to $18.20, with a yearly change of 100.66%. Norwegian Air Shuttle's prices fluctuated between $0.86 and $1.87, with a yearly change of 116.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.