SkyWest vs American Airlines Which Should You Buy?

SkyWest and American Airlines are two leading players in the airline industry, but they have distinct differences in their business models and financial performance. SkyWest is a regional airline that operates primarily as a partner for major carriers, while American Airlines is one of the largest airlines in the world with a global route network. Investors should consider various factors such as market trends, competition, financial health, and growth prospects when evaluating the stocks of these two companies.

SkyWest or American Airlines?

When comparing SkyWest 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 SkyWest 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. SkyWest 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. SkyWest 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 SkyWest P/E ratio at 17.76 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. SkyWest P/B ratio is 1.87 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, SkyWest has seen a 5-year revenue growth of 0.08%, while American Airlines's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SkyWest's ROE at 11.02% 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 $107.07 for SkyWest and $17.23 for American Airlines. Over the past year, SkyWest's prices ranged from $48.28 to $117.51, with a yearly change of 143.39%. 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.