Delta vs SkyWest Which Is a Smarter Choice?

Delta Air Lines and SkyWest are two major players in the airline industry, each with their own unique strengths and weaknesses. Delta, as one of the largest and most well-known airlines in the world, has a strong brand presence and a large market share. SkyWest, on the other hand, is a regional airline that operates under the Delta Connection brand. Both companies have been impacted by the COVID-19 pandemic, but have shown resilience in navigating the challenges. Investors interested in airline stocks should carefully consider the financial performance and future prospects of both Delta and SkyWest before making any investment decisions.

Delta or SkyWest?

When comparing Delta and SkyWest, 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 SkyWest.

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 1.03%, while SkyWest 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, SkyWest 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 20.82 and SkyWest's P/E ratio at 17.65. 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 1.27 while SkyWest's P/B ratio is 1.86.

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 SkyWest's is 0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Delta's ROE at 6.26% and SkyWest's ROE at 11.02%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹120.10 for Delta and $105.90 for SkyWest. Over the past year, Delta's prices ranged from ₹104.45 to ₹159.80, with a yearly change of 52.99%. SkyWest's prices fluctuated between $48.28 and $117.51, with a yearly change of 143.39%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.