SAS vs American Airlines Which Is a Smarter Choice?

SAS and American Airlines are two major players in the airline industry, each with their own unique strengths and weaknesses. SAS, a Scandinavian airline, has a strong presence in Europe and offers premium services to its customers. On the other hand, American Airlines is one of the largest carriers in the world, with extensive domestic and international routes. Both companies have faced challenges in recent years, including rising fuel costs and competition from low-cost carriers. Investors looking to invest in airline stocks should carefully consider the financial performance and market position of both SAS and American Airlines before making a decision.

SAS or American Airlines?

When comparing SAS 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 SAS 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. SAS 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. SAS 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 SAS P/E ratio at -0.00 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. SAS P/B ratio is -0.00 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, SAS has seen a 5-year revenue growth of -0.79%, while American Airlines's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SAS's ROE at 61.55% 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 kr0.00 for SAS and $16.81 for American Airlines. Over the past year, SAS's prices ranged from kr0.00 to kr0.47, with a yearly change of 17838.46%. 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.