Frontier vs United Airlines Which Is More Reliable?

Frontier Airlines and United Airlines are two major players in the airline industry, each with its own unique strengths and weaknesses. Frontier Airlines is known for its focus on offering low-cost flights, while United Airlines is a larger, more established carrier with a global reach. When comparing their stocks, investors must consider factors such as market trends, financial performance, and company strategy. Both companies face challenges in the current economic climate, but each offers potential opportunities for growth and stability in the long term.

Frontier or United Airlines?

When comparing Frontier 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 Frontier 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. Frontier has a dividend yield of -%, while United 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, 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 Frontier P/E ratio at -236.08 and United Airlines's P/E ratio at 11.33. 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 Airlines's P/B ratio is 2.74.

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 Airlines's is 0.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontier's ROE at -1.17% 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 $6.30 for Frontier and $94.92 for United Airlines. Over the past year, Frontier's prices ranged from $2.79 to $8.33, with a yearly change of 198.57%. United Airlines's prices fluctuated between $37.02 and $105.09, with a yearly change of 183.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.