American Airlines vs Sun Country Airlines Which Should You Buy?

American Airlines and Sun Country Airlines are two major players in the airline industry, each with its own unique strengths and challenges. American Airlines, a legacy carrier with a long history in the industry, has faced competition from new budget airlines and changing travel trends. Sun Country Airlines, on the other hand, is a smaller carrier known for its focus on leisure travel and regional routes. Investors looking to compare these two airline stocks will need to carefully evaluate factors such as financial performance, market positioning, and future growth potential.

American Airlines or Sun Country Airlines?

When comparing American Airlines and Sun Country 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 Sun Country 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 Sun Country Airlines 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, Sun Country Airlines 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 41.21 and Sun Country Airlines's P/E ratio at 17.89. 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 -2.33 while Sun Country Airlines's P/B ratio is 1.46.

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 Sun Country Airlines's is 0.86%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Airlines's ROE at -5.42% and Sun Country Airlines's ROE at 8.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $17.23 for American Airlines and $15.24 for Sun Country Airlines. Over the past year, American Airlines's prices ranged from $9.07 to $18.20, with a yearly change of 100.66%. Sun Country Airlines's prices fluctuated between $9.22 and $16.47, with a yearly change of 78.63%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.