UNITED vs Alaska Air Which Is More Favorable?

United Airlines Holdings Inc. and Alaska Air Group Inc. are two prominent players in the airline industry, both operating domestic and international flights. United Airlines is one of the largest airlines globally, while Alaska Air has a strong presence on the West Coast. The stocks of these airlines are influenced by a variety of factors, including fuel prices, competition, and overall economic conditions. Investors looking to diversify their portfolio may consider investing in both United and Alaska Air stocks for potential growth and stability in the airline sector.

UNITED or Alaska Air?

When comparing UNITED and Alaska Air, 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 and Alaska Air.

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 has a dividend yield of 3.0%, while Alaska Air has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. UNITED reports a 5-year dividend growth of 6.43% year and a payout ratio of 0.00%. On the other hand, Alaska Air 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 P/E ratio at 51.38 and Alaska Air's P/E ratio at 24.52. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. UNITED P/B ratio is 1.40 while Alaska Air's P/B ratio is 1.76.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, UNITED has seen a 5-year revenue growth of -0.46%, while Alaska Air's is 0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UNITED's ROE at 2.56% and Alaska Air's ROE at 7.67%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥798.00 for UNITED and $62.17 for Alaska Air. Over the past year, UNITED's prices ranged from ¥670.00 to ¥953.00, with a yearly change of 42.24%. Alaska Air's prices fluctuated between $32.62 and $65.62, with a yearly change of 101.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.