Icelandair vs UNITED Which Outperforms?

Icelandair and United Airlines are two major players in the airline industry, each offering unique opportunities for investors. Icelandair, based in Reykjavik, Iceland, operates a fleet of modern aircraft and serves destinations across Europe and North America. United, one of the largest airlines in the world, is headquartered in Chicago and has a vast network of domestic and international routes. Both stocks present investors with the potential for growth and profitability, but each company also faces challenges and risks in the competitive airline market.

Icelandair or UNITED?

When comparing Icelandair 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 Icelandair 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. Icelandair has a dividend yield of -%, while UNITED has a dividend yield of 2.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Icelandair 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 Icelandair P/E ratio at -14.78 and UNITED's P/E ratio at 51.89. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Icelandair P/B ratio is 1.38 while UNITED's P/B ratio is 1.42.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Icelandair has seen a 5-year revenue growth of -0.88%, while UNITED's is -0.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Icelandair's ROE at -10.57% and UNITED's ROE at 2.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are kr1.32 for Icelandair and ¥801.00 for UNITED. Over the past year, Icelandair's prices ranged from kr0.84 to kr1.54, with a yearly change of 84.21%. 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.