Delta vs Sun Country Airlines Which Is More Reliable?

Delta Air Lines and Sun Country Airlines are two major players in the airline industry. Delta is a well-established, major carrier with a strong presence in domestic and international markets. On the other hand, Sun Country is a smaller, budget-friendly airline that primarily operates leisure and vacation destinations. Investors looking to invest in the airline industry may consider comparing the stocks of Delta and Sun Country to determine which company offers the best investment opportunity based on factors such as financial performance, growth potential, and market dynamics.

Delta or Sun Country Airlines?

When comparing Delta and Sun Country 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 Sun Country 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 1.04%, while Sun Country Airlines 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, Sun Country 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 20.69 and Sun Country Airlines's P/E ratio at 18.18. 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 1.26 while Sun Country Airlines's P/B ratio is 1.48.

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 Sun Country Airlines's is 0.86%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Delta's ROE at 6.26% and Sun Country Airlines's ROE at 8.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹117.55 for Delta and $15.12 for Sun Country Airlines. Over the past year, Delta's prices ranged from ₹104.45 to ₹159.80, with a yearly change of 52.99%. Sun Country Airlines's prices fluctuated between $9.22 and $17.56, with a yearly change of 90.46%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.