Norwegian Air Shuttle vs American Airlines Which Is More Profitable?

Norwegian Air Shuttle and American Airlines are two major players in the aviation industry, each offering unique investment opportunities for stock investors. While Norwegian Air Shuttle is a low-cost carrier known for its budget-friendly pricing and expanding international routes, American Airlines is one of the largest airlines in the world with a strong domestic presence. Both companies have faced challenges in recent years, including fluctuating fuel prices and changing consumer preferences, making their stocks an intriguing option for those looking to diversify their portfolio within the airline sector.

Norwegian Air Shuttle or American Airlines?

When comparing Norwegian Air Shuttle 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 Norwegian Air Shuttle 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. Norwegian Air Shuttle has a dividend yield of -%, while American Airlines has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Norwegian Air Shuttle reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Norwegian Air Shuttle P/E ratio at 6.20 and American Airlines's P/E ratio at 40.45. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Norwegian Air Shuttle P/B ratio is 1.51 while American Airlines's P/B ratio is -2.29.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Norwegian Air Shuttle has seen a 5-year revenue growth of -1.00%, while American Airlines's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Norwegian Air Shuttle's ROE at 28.77% 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 $1.00 for Norwegian Air Shuttle and $16.81 for American Airlines. Over the past year, Norwegian Air Shuttle's prices ranged from $0.86 to $1.87, with a yearly change of 116.18%. 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.