United Airlines vs Singapore Airlines Which Is a Smarter Choice?

United Airlines and Singapore Airlines are two major players in the global airline industry. United Airlines, based in the United States, is known for its extensive domestic and international route network. Singapore Airlines, on the other hand, is a highly regarded carrier known for its exceptional customer service and luxurious in-flight experience. Both airlines have seen fluctuations in their stock prices in recent years due to various factors such as competition, fuel prices, and global economic conditions. Investors interested in the airline industry may be considering the differences between United Airlines and Singapore Airlines stocks in terms of performance, growth potential, and overall stability.

United Airlines or Singapore Airlines?

When comparing United Airlines and Singapore 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 Singapore 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 Singapore Airlines has a dividend yield of 4.27%. 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, Singapore Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 42.90%.

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 Singapore Airlines's P/E ratio at 11.97. 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 Singapore Airlines's P/B ratio is 2.30.

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 Singapore Airlines's is -0.69%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with United Airlines's ROE at 27.31% and Singapore Airlines's ROE at 17.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $94.92 for United Airlines and $9.44 for Singapore Airlines. Over the past year, United Airlines's prices ranged from $37.02 to $105.09, with a yearly change of 183.87%. Singapore Airlines's prices fluctuated between $8.63 and $10.99, with a yearly change of 27.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.