Delta Air Lines vs Air France-KLM Which Should You Buy?

Delta Air Lines and Air France-KLM are two major players in the global airline industry, each with a significant presence in different parts of the world. Both companies have faced challenges in recent years, including fluctuating fuel prices, changing consumer preferences, and intense competition. Investors are closely monitoring the stocks of these airlines, as they seek to capitalize on potential opportunities for growth and profitability. In this comparison, we will analyze the performance of Delta Air Lines and Air France-KLM stocks, highlighting key differences and similarities between the two companies.

Delta Air Lines or Air France-KLM?

When comparing Delta Air Lines and Air France-KLM, 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 Delta Air Lines and Air France-KLM.

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. Delta Air Lines has a dividend yield of 0.81%, while Air France-KLM has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Delta Air Lines reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.99%. On the other hand, Air France-KLM reports a 5-year dividend growth of 0.00% year and a payout ratio of 54.03%.

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 Delta Air Lines P/E ratio at 8.19 and Air France-KLM's P/E ratio at 1.82. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Delta Air Lines P/B ratio is 2.89 while Air France-KLM's P/B ratio is -0.13.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Delta Air Lines has seen a 5-year revenue growth of 0.41%, while Air France-KLM's is -0.77%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Delta Air Lines's ROE at 39.94% and Air France-KLM's ROE at -5.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $61.39 for Delta Air Lines and $0.79 for Air France-KLM. Over the past year, Delta Air Lines's prices ranged from $36.34 to $67.50, with a yearly change of 85.75%. Air France-KLM's prices fluctuated between $0.75 and $1.65, with a yearly change of 120.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.