LATAM Airlines vs American Airlines Which Performs Better?

LATAM Airlines Group and American Airlines are two major players in the aviation industry with a significant presence in the Latin American market. Both companies have experienced fluctuations in their stock prices due to various factors, including changes in fuel prices, demand for air travel, and global economic conditions. Investors interested in the airline industry may want to closely monitor the performance of LATAM Airlines and American Airlines stocks to stay informed about potential opportunities for investment.

LATAM Airlines or American Airlines?

When comparing LATAM Airlines and American 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 LATAM Airlines and American 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. LATAM Airlines has a dividend yield of 1180.4%, while American Airlines has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. LATAM Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.04%. On the other hand, American 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 LATAM Airlines P/E ratio at 42.15 and American Airlines's P/E ratio at 41.21. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. LATAM Airlines P/B ratio is 50.48 while American Airlines's P/B ratio is -2.33.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, LATAM Airlines has seen a 5-year revenue growth of -0.98%, while American Airlines's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with LATAM Airlines's ROE at 164.26% and American Airlines's ROE at -5.42%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.04 for LATAM Airlines and $17.23 for American Airlines. Over the past year, LATAM Airlines's prices ranged from $0.04 to $1598.00, with a yearly change of 3759900.00%. American Airlines's prices fluctuated between $9.07 and $18.20, with a yearly change of 100.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.