Spirit Airlines vs Frontier

Spirit Airlines and Frontier Airlines are two popular ultra-low-cost carriers in the United States, known for offering budget-friendly flights to various destinations. Both airlines have been attracting investors' attention due to their unique business models and growing market share in the competitive airline industry. Investors are closely monitoring these two stocks to identify potential opportunities for growth and profitability. In this comparison, we will analyze the key factors that differentiate Spirit Airlines and Frontier Airlines stocks to determine which may be a more promising investment option.

Spirit Airlines or Frontier?

When comparing Spirit Airlines and Frontier, 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 Frontier.

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 Frontier has a dividend yield of -%. 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, Frontier 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 Spirit Airlines P/E ratio at -0.27 and Frontier's P/E ratio at -21.06. 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 Frontier's P/B ratio is 2.59.

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 Frontier's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Spirit Airlines's ROE at -63.51% and Frontier's ROE at -12.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.60 for Spirit Airlines and $5.76 for Frontier. Over the past year, Spirit Airlines's prices ranged from $1.40 to $17.49, with a yearly change of 1149.29%. Frontier's prices fluctuated between $2.79 and $8.33, with a yearly change of 198.57%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.