UNITED vs Bayer Which Is More Attractive?

United and Bayer are two prominent companies in the global market, each with their own unique strengths and weaknesses. United, a leading airline company, has seen fluctuations in its stock prices due to the impact of the pandemic on the travel industry. On the other hand, Bayer, a multinational pharmaceutical and life sciences company, has faced challenges related to legal issues and product recalls. Both stocks have shown resilience in the face of adversity, making them intriguing options for investors seeking stability and potential growth.

UNITED or Bayer?

When comparing UNITED and Bayer, 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 Bayer.

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 3.03%, while Bayer has a dividend yield of 0.43%. 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, Bayer reports a 5-year dividend growth of -10.74% year and a payout ratio of -13.52%.

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 51.06 and Bayer's P/E ratio at -5.64. 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 1.39 while Bayer's P/B ratio is 0.16.

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 Bayer's is 3.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UNITED's ROE at 2.56% and Bayer's ROE at -2.61%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥789.00 for UNITED and $5.29 for Bayer. Over the past year, UNITED's prices ranged from ¥670.00 to ¥953.00, with a yearly change of 42.24%. Bayer's prices fluctuated between $4.94 and $9.79, with a yearly change of 98.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.