Delta vs Singapore Airlines Which Performs Better?

Delta Airlines and Singapore Airlines are two major players in the airline industry with a global presence and strong brand recognition. Both companies have faced challenges in recent years due to the impact of the COVID-19 pandemic on air travel. While Delta has been able to secure government aid and make strategic cost-cutting measures to weather the storm, Singapore Airlines has faced greater financial struggles. Investors looking to compare the stocks of these two companies should consider their financial performance, market position, and long-term growth prospects.

Delta or Singapore Airlines?

When comparing Delta and Singapore 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 Delta and Singapore 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. Delta has a dividend yield of 1.01%, while Singapore Airlines has a dividend yield of 4.22%. 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, Singapore Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 42.90%.

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 21.33 and Singapore Airlines's P/E ratio at 12.11. 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 Singapore Airlines's P/B ratio is 2.33.

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 Singapore Airlines's is -0.69%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Delta's ROE at 6.26% and Singapore Airlines's ROE at 17.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹123.40 for Delta and $9.60 for Singapore Airlines. Over the past year, Delta's prices ranged from ₹104.45 to ₹159.80, with a yearly change of 52.99%. Singapore Airlines's prices fluctuated between $8.63 and $10.99, with a yearly change of 27.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.