American Airlines vs SkyWest Which Is More Lucrative?

American Airlines Group Inc. (AAL) and SkyWest Inc. (SKYW) are two prominent players in the airline industry, each with their own unique strengths and weaknesses. American Airlines is one of the largest airlines in the world, operating a vast network of domestic and international flights. SkyWest, on the other hand, is a regional airline that primarily operates connecting flights for major carriers. Both companies have been impacted by the COVID-19 pandemic, but their stocks have shown varying levels of resilience. Let's explore the differences between American Airlines and SkyWest stocks.

American Airlines or SkyWest?

When comparing American Airlines and SkyWest, 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 SkyWest.

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 SkyWest 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, SkyWest 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 SkyWest's P/E ratio at 19.50. 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 SkyWest's P/B ratio is 2.05.

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 SkyWest's is 0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Airlines's ROE at -5.42% and SkyWest's ROE at 11.02%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.89 for American Airlines and $113.77 for SkyWest. Over the past year, American Airlines's prices ranged from $9.07 to $16.15, with a yearly change of 78.06%. SkyWest's prices fluctuated between $42.11 and $116.47, with a yearly change of 176.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.