Frontier vs UNITED Which Is More Lucrative?

Frontier and United are two prominent stocks in the airline industry, but they have distinct differences that set them apart. Frontier Airlines is known for its low-cost model and emphasis on budget-conscious travelers, while United Airlines is a larger, more established carrier with a broader range of services and destinations. Both stocks have experienced fluctuations in the market, making them attractive options for investors seeking diversity in their portfolio. Understanding the unique qualities of each stock is essential for making informed investment decisions.

Frontier or UNITED?

When comparing Frontier and UNITED, 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 UNITED.

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 UNITED has a dividend yield of 3.0%. 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, UNITED reports a 5-year dividend growth of 6.43% 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 -236.08 and UNITED's P/E ratio at 51.38. 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 2.58 while UNITED's P/B ratio is 1.40.

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 UNITED's is -0.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontier's ROE at -1.17% and UNITED's ROE at 2.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.30 for Frontier and ¥798.00 for UNITED. Over the past year, Frontier's prices ranged from $2.79 to $8.33, with a yearly change of 198.57%. UNITED's prices fluctuated between ¥670.00 and ¥953.00, with a yearly change of 42.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.