Delta vs Frontier

Delta and Frontier are two prominent airline companies in the United States, each with its own distinct characteristics and financial performance. Delta Air Lines is a well-established and profitable player in the industry, known for its strong operational efficiency and competitive advantages. On the other hand, Frontier Airlines is a smaller, low-cost carrier that has been expanding rapidly in recent years. Investors looking to invest in airline stocks may need to carefully consider the opportunities and risks associated with both Delta and Frontier.

Delta or Frontier?

When comparing Delta and Frontier, 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 Frontier.

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 Frontier 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, Frontier 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 16.54 and Frontier's P/E ratio at -21.02. 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 1.30 while Frontier's P/B ratio is 2.59.

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 Frontier's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Delta's ROE at 8.14% and Frontier's ROE at -12.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹122.00 for Delta and $5.99 for Frontier. Over the past year, Delta's prices ranged from ₹104.45 to ₹159.80, with a yearly change of 52.99%. Frontier's prices fluctuated between $2.79 and $8.33, with a yearly change of 198.57%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.