American Airlines vs Singapore Airlines Which Is a Smarter Choice?

American Airlines and Singapore Airlines are two prominent players in the aviation industry, both offering investors opportunities in the stock market. American Airlines, a major U.S. carrier, has faced challenges in recent years due to competition and economic fluctuations. On the other hand, Singapore Airlines, known for its exceptional service and strong brand presence, has been a top performer in the industry. Each company has its own strengths and weaknesses, making them attractive options for investors seeking opportunities in the airline sector.

American Airlines or Singapore Airlines?

When comparing American Airlines and Singapore Airlines, 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 Singapore Airlines.

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 Singapore Airlines has a dividend yield of 4.27%. 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, Singapore Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 42.90%.

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 Singapore Airlines's P/E ratio at 11.97. 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 Singapore Airlines's P/B ratio is 2.30.

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 Singapore Airlines's is -0.69%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Airlines's ROE at -5.42% and Singapore Airlines's ROE at 17.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $16.81 for American Airlines and $9.44 for Singapore Airlines. Over the past year, American Airlines's prices ranged from $9.07 to $18.20, with a yearly change of 100.66%. Singapore Airlines's prices fluctuated between $8.63 and $10.99, with a yearly change of 27.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.