United Airlines vs Frontier

United Airlines and Frontier Airlines are two major players in the airline industry, each offering unique investment opportunities for potential investors. United Airlines, with a long-standing reputation and global presence, has historically been a more stable and established stock option. In contrast, Frontier Airlines, a budget carrier known for its low fares and no-frills approach, may offer investors the potential for higher risk and reward. Understanding the differences between these two stocks can help investors make informed decisions about where to allocate their funds in the dynamic airline industry.

United Airlines or Frontier?

When comparing United 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 United 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. United Airlines has a dividend yield of -%, while Frontier 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, 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 United Airlines P/E ratio at 7.71 and Frontier's P/E ratio at -21.02. 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 1.86 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, United Airlines has seen a 5-year revenue growth of 0.07%, while Frontier's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with United Airlines's ROE at 27.31% and Frontier's ROE at -12.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $63.49 for United Airlines and $5.99 for Frontier. Over the past year, United Airlines's prices ranged from $33.68 to $65.02, with a yearly change of 93.05%. 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.