Frontier vs American Airlines

Frontier Airlines and American Airlines are both major players in the aviation industry, but they have distinct differences in their business strategies and financial performance. Frontier Airlines is a low-cost carrier that focuses on budget-conscious travelers, while American Airlines is a full-service carrier catering to a wider range of passengers. Investors should consider factors such as market share, revenue growth, and profitability when comparing the stocks of these two companies. Let's delve deeper into the comparison of Frontier vs American Airlines stocks.

Frontier or American Airlines?

When comparing Frontier and American 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 Frontier and American 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. Frontier has a dividend yield of -%, while American Airlines has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Frontier reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, American 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 Frontier P/E ratio at -21.02 and American Airlines's P/E ratio at -65.32. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Frontier P/B ratio is 2.59 while American Airlines's P/B ratio is -1.67.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Frontier has seen a 5-year revenue growth of 0.62%, while American Airlines's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontier's ROE at -12.48% and American Airlines's ROE at 2.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.99 for Frontier and $12.00 for American Airlines. Over the past year, Frontier's prices ranged from $2.79 to $8.33, with a yearly change of 198.57%. American Airlines's prices fluctuated between $9.07 and $16.15, with a yearly change of 78.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.