Spirit Airlines vs Delta

Spirit Airlines and Delta Air Lines are two prominent companies in the airline industry, each offering unique investment opportunities. Spirit Airlines, known for its low-cost model and focus on budget-conscious travelers, has seen steady growth in recent years. On the other hand, Delta Air Lines, a legacy carrier with a larger market share and more diverse service offerings, has weathered various industry challenges and remains a stable investment choice. The differences in their business models and target markets make for an interesting comparison in stock performance and investor potential.

Spirit Airlines or Delta?

When comparing Spirit Airlines and Delta, 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 Spirit Airlines and Delta.

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. Spirit Airlines has a dividend yield of 30.3%, while Delta has a dividend yield of 1.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Spirit Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Delta reports a 5-year dividend growth of 4.56% 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 Spirit Airlines P/E ratio at -0.27 and Delta's P/E ratio at 16.76. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Spirit Airlines P/B ratio is 0.22 while Delta's P/B ratio is 1.32.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Spirit Airlines has seen a 5-year revenue growth of 0.01%, while Delta's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Spirit Airlines's ROE at -63.51% and Delta's ROE at 8.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.60 for Spirit Airlines and ₹123.50 for Delta. Over the past year, Spirit Airlines's prices ranged from $1.40 to $17.49, with a yearly change of 1149.29%. Delta's prices fluctuated between ₹104.45 and ₹159.80, with a yearly change of 52.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.