Delta vs Alaska Air Which Is More Promising?

Delta Air Lines and Alaska Air Group are two major players in the competitive airline industry, both known for their extensive route networks and strong financial performance. Investors looking to dive into the aviation sector may find themselves torn between these two giants. Delta, with its larger market capitalization and global reach, offers stability and a solid track record. On the other hand, Alaska Air, known for its exceptional customer service and focus on the West Coast market, presents a compelling growth opportunity. This comparison will delve into the key metrics and factors that investors should consider when evaluating Delta vs Alaska Air stocks.

Delta or Alaska Air?

When comparing Delta and Alaska Air, 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 and Alaska Air.

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 has a dividend yield of 1.02%, while Alaska Air has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Delta reports a 5-year dividend growth of 4.56% year and a payout ratio of 0.00%. On the other hand, Alaska Air 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 Delta P/E ratio at 21.12 and Alaska Air's P/E ratio at 24.85. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Delta P/B ratio is 1.29 while Alaska Air's P/B ratio is 1.79.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Delta has seen a 5-year revenue growth of 0.17%, while Alaska Air's is 0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Delta's ROE at 6.26% and Alaska Air's ROE at 7.67%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹122.53 for Delta and $63.10 for Alaska Air. Over the past year, Delta's prices ranged from ₹104.45 to ₹159.80, with a yearly change of 52.99%. Alaska Air's prices fluctuated between $32.62 and $65.62, with a yearly change of 101.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.