Spirit Airlines vs UNITED Which Outperforms?

Spirit Airlines and United Airlines are two major players in the aviation industry, both offering domestic and international flights to millions of passengers each year. While Spirit Airlines is known for its no-frills, low-cost approach to air travel, United Airlines is a legacy carrier with a more traditional service offering. In terms of stocks, both companies have faced challenges in recent years due to industry competition, economic factors, and the impact of global events such as the COVID-19 pandemic. Investors interested in these two airline stocks should consider factors such as revenue growth, profitability, and market conditions before making investment decisions.

Spirit Airlines or UNITED?

When comparing Spirit 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 Spirit 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. Spirit Airlines has a dividend yield of 37.04%, while UNITED has a dividend yield of 4.77%. 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, 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 Spirit Airlines P/E ratio at -0.17 and UNITED's P/E ratio at 49.19. 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 0.15 while UNITED's P/B ratio is 1.34.

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 UNITED's is -0.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Spirit Airlines's ROE at -63.51% and UNITED's ROE at 2.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.03 for Spirit Airlines and ¥761.00 for UNITED. Over the past year, Spirit Airlines's prices ranged from $1.03 to $17.02, with a yearly change of 1552.43%. 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.