Delta vs Spirit Airlines Which Is More Promising?

Delta Air Lines (DAL) and Spirit Airlines (SAVE) are two major players in the airline industry with distinct business models and market positions. Delta, one of the world's largest airlines, focuses on providing premium service and serving a wide range of destinations. Spirit, on the other hand, is known for its low-cost, no-frills approach to air travel. Investors looking to capitalize on the airline industry may find value in comparing and contrasting the stocks of these two companies.

Delta or Spirit Airlines?

When comparing Delta and Spirit 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 Spirit 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 1.09%, while Spirit Airlines has a dividend yield of 37.04%. 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, Spirit Airlines 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 19.80 and Spirit Airlines's P/E ratio at -0.17. 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 1.21 while Spirit Airlines's P/B ratio is 0.15.

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 Spirit Airlines's is 0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Delta's ROE at 6.26% and Spirit Airlines's ROE at -63.51%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹114.51 for Delta and $1.03 for Spirit Airlines. Over the past year, Delta's prices ranged from ₹104.45 to ₹159.80, with a yearly change of 52.99%. Spirit Airlines's prices fluctuated between $1.03 and $17.02, with a yearly change of 1552.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.