Southwest Airlines vs Premier Which Is Superior?

Southwest Airlines and Premier stocks are two popular options for investors looking to diversify their portfolios. Southwest Airlines is a well-established airline company known for its low-cost fares and strong financial performance. Premier stocks, on the other hand, are often linked to premier brands in various industries, offering potential for high returns. Both options have their own unique strengths and considerations, making them worth comparing for investors seeking growth opportunities in the stock market.

Southwest Airlines or Premier?

When comparing Southwest Airlines and Premier, 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 Southwest Airlines and Premier.

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. Southwest Airlines has a dividend yield of 2.76%, while Premier has a dividend yield of 3.64%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Southwest Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of -897.92%. On the other hand, Premier reports a 5-year dividend growth of 0.00% year and a payout ratio of 62.31%.

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 Southwest Airlines P/E ratio at -406.76 and Premier's P/E ratio at 15.93. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Southwest Airlines P/B ratio is 1.88 while Premier's P/B ratio is 1.19.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Southwest Airlines has seen a 5-year revenue growth of 0.14%, while Premier's is -0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Southwest Airlines's ROE at -0.46% and Premier's ROE at 7.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $31.73 for Southwest Airlines and $22.82 for Premier. Over the past year, Southwest Airlines's prices ranged from $22.58 to $35.18, with a yearly change of 55.80%. Premier's prices fluctuated between $17.95 and $23.43, with a yearly change of 30.49%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.