Delta vs United Airlines

Delta and United Airlines are two major players in the highly competitive airline industry. Both companies have experienced fluctuations in their stock prices over the years, influenced by factors such as fuel prices, demand for air travel, and global events. Investors closely monitor the performance of these stocks, comparing key metrics such as revenue, profitability, and market share. Understanding the differences between Delta and United Airlines stocks can help investors make informed decisions in a dynamic market environment.

Delta or United Airlines?

When comparing Delta and United 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 United 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 1.02%, while United 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, United 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 16.54 and United Airlines's P/E ratio at 7.71. 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 United Airlines'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 United Airlines's is 0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Delta's ROE at 8.14% and United Airlines's ROE at 27.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹122.00 for Delta and $63.49 for United Airlines. Over the past year, Delta's prices ranged from ₹104.45 to ₹159.80, with a yearly change of 52.99%. United Airlines's prices fluctuated between $33.68 and $65.02, with a yearly change of 93.05%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.