Huntsman vs Southwest Airlines Which Is a Smarter Choice?

Huntsman Corporation and Southwest Airlines are two very different companies operating in distinct industries. Huntsman is a global manufacturer and marketer of specialty chemicals, while Southwest Airlines is a major low-cost carrier in the airline industry. Despite their differences, both companies are publicly traded on the stock market and have experienced fluctuations in their stock prices over time. Investors interested in diversifying their portfolios may consider comparing the performance of Huntsman and Southwest Airlines stocks to make informed investment decisions.

Huntsman or Southwest Airlines?

When comparing Huntsman and Southwest 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 Huntsman and Southwest 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. Huntsman has a dividend yield of 6.19%, while Southwest Airlines has a dividend yield of 2.76%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Huntsman reports a 5-year dividend growth of 7.89% year and a payout ratio of -1307.69%. On the other hand, Southwest Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of -897.92%.

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 Huntsman P/E ratio at -264.48 and Southwest Airlines's P/E ratio at -406.76. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Huntsman P/B ratio is 0.48 while Southwest Airlines's P/B ratio is 1.88.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Huntsman has seen a 5-year revenue growth of -0.13%, while Southwest Airlines's is 0.14%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Huntsman's ROE at -0.31% and Southwest Airlines's ROE at -0.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $19.95 for Huntsman and $31.73 for Southwest Airlines. Over the past year, Huntsman's prices ranged from $19.90 to $27.01, with a yearly change of 35.73%. Southwest Airlines's prices fluctuated between $22.58 and $35.18, with a yearly change of 55.80%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.