United Airlines vs American Airlines Which Is More Profitable?

United Airlines and American Airlines are two major players in the airline industry, each with their own unique strengths and weaknesses. Both stocks have been subject to fluctuating market conditions and external factors such as fuel prices and global travel trends. Investors have been closely monitoring their performance, as both companies navigate the challenges brought on by the COVID-19 pandemic. Understanding the differences between United Airlines and American Airlines stocks can provide valuable insights for investors looking to make informed decisions in the aviation sector.

United Airlines or American Airlines?

When comparing United Airlines and American 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 United Airlines and American 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. United Airlines has a dividend yield of -%, while American Airlines has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. United Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, American 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 United Airlines P/E ratio at 11.33 and American Airlines's P/E ratio at 40.45. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. United Airlines P/B ratio is 2.74 while American Airlines's P/B ratio is -2.29.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, United Airlines has seen a 5-year revenue growth of 0.06%, while American Airlines's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with United Airlines's ROE at 27.31% and American Airlines's ROE at -5.42%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $94.92 for United Airlines and $16.81 for American Airlines. Over the past year, United Airlines's prices ranged from $37.02 to $105.09, with a yearly change of 183.87%. American Airlines's prices fluctuated between $9.07 and $18.20, with a yearly change of 100.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.