American Airlines vs United Airlines Which Is More Reliable?

American Airlines and United Airlines are two of the largest airlines in the United States, competing fiercely for market dominance. Both companies have experienced ups and downs in their stocks, influenced by factors such as fuel prices, competition, and the overall health of the economy. Investors closely monitor the performance of these stocks, as they are indicators of the airline industry's strength. Understanding the differences between American Airlines and United Airlines stocks is crucial for investors looking to make informed decisions in this volatile market.

American Airlines or United Airlines?

When comparing American Airlines and United 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 United 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 United 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, United 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 33.85 and United Airlines's P/E ratio at 10.65. 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 United Airlines's P/B ratio is 2.57.

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 United Airlines's is 0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Airlines's ROE at -5.42% and United Airlines's ROE at 27.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.89 for American Airlines and $87.34 for United Airlines. Over the past year, American Airlines's prices ranged from $9.07 to $16.15, with a yearly change of 78.06%. United Airlines's prices fluctuated between $37.02 and $89.60, with a yearly change of 142.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.