Spirit Airlines vs United Airlines Which Is More Attractive?

When comparing Spirit Airlines and United Airlines stocks, investors must consider several key factors. Spirit Airlines is known for its low-cost model, which has helped it grow rapidly in recent years. However, United Airlines is a larger, more established airline with a global presence. Both airlines have faced challenges due to the COVID-19 pandemic, but United Airlines has shown more resilience. Ultimately, the decision to invest in either stock will depend on individual risk tolerance and investment goals.

Spirit Airlines or United Airlines?

When comparing Spirit Airlines and United 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 Spirit Airlines and United 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. Spirit Airlines has a dividend yield of 27.78%, while United Airlines 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, United 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 Spirit Airlines P/E ratio at -0.17 and United Airlines's P/E ratio at 11.33. 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 Airlines's P/B ratio is 2.74.

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 Airlines's is 0.06%. 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 Airlines's ROE at 27.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.03 for Spirit Airlines and $94.92 for United Airlines. Over the past year, Spirit Airlines's prices ranged from $0.01 to $17.02, with a yearly change of 170050.00%. United Airlines's prices fluctuated between $37.02 and $105.09, with a yearly change of 183.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.