Copa vs United Airlines Which Is More Reliable?

Copa Holdings SA and United Airlines Holdings Inc. are two major players in the airline industry, each with their own unique strengths and weaknesses. Copa, based in Panama, focuses mainly on flights within Latin America, while United Airlines operates a larger global network. Both companies have faced challenges in recent years, including the impact of the COVID-19 pandemic on travel demand. Investors looking to differentiate between these two stocks will need to carefully evaluate their financial performance, operational efficiency, and growth prospects.

Copa or United Airlines?

When comparing Copa 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 Copa 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. Copa has a dividend yield of 5.7%, while United Airlines has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Copa reports a 5-year dividend growth of 0.00% year and a payout ratio of 19.98%. 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 Copa P/E ratio at 6.16 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. Copa P/B ratio is 1.85 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, Copa has seen a 5-year revenue growth of 0.30%, while United Airlines's is 0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Copa's ROE at 31.39% 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 $98.22 for Copa and $87.34 for United Airlines. Over the past year, Copa's prices ranged from $80.01 to $114.00, with a yearly change of 42.48%. 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.