Frontier vs Delta Which Is More Lucrative?

Frontier and Delta are two major airlines offering domestic and international flights. Both companies have their strengths and weaknesses when it comes to their stocks. Frontier Airlines is known for its low-cost fares and no-frills service, making it an attractive option for budget-conscious travelers. Delta Airlines, on the other hand, is a larger, legacy carrier with a more extensive route network and a reputation for exceptional customer service. Investors may choose between Frontier's potential for growth and Delta's stability and reliable performance in the stock market.

Frontier or Delta?

When comparing Frontier and Delta, 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 Delta.

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 Delta has a dividend yield of 1.04%. 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, Delta reports a 5-year dividend growth of 4.56% 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 -251.12 and Delta's P/E ratio at 20.69. 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 2.74 while Delta's P/B ratio is 1.26.

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 Delta's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontier's ROE at -1.17% and Delta's ROE at 6.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.57 for Frontier and ₹117.55 for Delta. Over the past year, Frontier's prices ranged from $2.79 to $8.33, with a yearly change of 198.57%. Delta's prices fluctuated between ₹104.45 and ₹159.80, with a yearly change of 52.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.