United Spirits vs Spirit Airlines Which Is More Reliable?

United Spirits and Spirit Airlines are two companies in the beverage and airline industries, respectively. United Spirits is a leading alcoholic beverage company, while Spirit Airlines is a low-cost carrier known for its affordable flights. Both stocks have seen fluctuations in recent years due to various factors, such as market competition, economic conditions, and consumer trends. Investors looking to diversify their portfolio may consider these two stocks for their potential growth and stability in their respective industries.

United Spirits or Spirit Airlines?

When comparing United Spirits and Spirit 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 Spirits and Spirit 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 Spirits has a dividend yield of 0.61%, while Spirit Airlines has a dividend yield of 11.76%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. United Spirits reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Spirit 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 Spirits P/E ratio at 73.97 and Spirit Airlines's P/E ratio at -0.55. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. United Spirits P/B ratio is 13.74 while Spirit Airlines's P/B ratio is 0.46.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, United Spirits has seen a 5-year revenue growth of 0.22%, while Spirit Airlines's is 0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with United Spirits's ROE at 26.30% and Spirit Airlines's ROE at -63.51%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1448.15 for United Spirits and $2.67 for Spirit Airlines. Over the past year, United Spirits's prices ranged from ₹1027.30 to ₹1648.40, with a yearly change of 60.46%. Spirit Airlines's prices fluctuated between $1.40 and $17.02, with a yearly change of 1115.71%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.