Singapore Airlines vs UNITED Which Is More Profitable?

Singapore Airlines and United Airlines are two of the leading carriers in the airline industry. Both companies have a strong presence in their respective regions and have built a reputation for providing quality service to their customers. While Singapore Airlines is known for its luxurious flying experience and outstanding customer service, United Airlines is recognized for its extensive route network and widespread presence in the United States. Investors looking to capitalize on the airline industry may consider comparing and analyzing the stocks of these two companies to make informed investment decisions.

Singapore Airlines or UNITED?

When comparing Singapore Airlines 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 Singapore Airlines 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. Singapore Airlines has a dividend yield of 4.27%, while UNITED has a dividend yield of 2.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Singapore Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 42.90%. 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 Singapore Airlines P/E ratio at 11.97 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. Singapore Airlines P/B ratio is 2.30 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, Singapore Airlines has seen a 5-year revenue growth of -0.69%, while UNITED's is -0.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Singapore Airlines's ROE at 17.36% and UNITED's ROE at 2.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $9.44 for Singapore Airlines and ¥801.00 for UNITED. Over the past year, Singapore Airlines's prices ranged from $8.63 to $10.99, with a yearly change of 27.35%. 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.