UNITED vs Citizens Which Is Superior?

United Airlines (UNITED) and Citizens Financial Group (Citizens) are two prominent companies in the stock market, each with its own unique value proposition for investors. United Airlines, a major player in the airline industry, offers opportunities for growth as travel demand recovers post-pandemic. On the other hand, Citizens Financial Group, a leading financial services company, provides stability and consistent returns through its diversified range of banking and lending services. Investors looking to diversify their portfolio may find value in considering both UNITED and Citizens stocks.

UNITED or Citizens?

When comparing UNITED and Citizens, 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 Citizens.

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 2.97%, while Citizens has a dividend yield of 7.23%. 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, Citizens reports a 5-year dividend growth of -5.59% year and a payout ratio of 377.59%.

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 52.02 and Citizens's P/E ratio at 69.46. 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 1.42 while Citizens's P/B ratio is 1.16.

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 Citizens's is -0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UNITED's ROE at 2.56% and Citizens's ROE at 1.83%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥801.00 for UNITED and $8.85 for Citizens. Over the past year, UNITED's prices ranged from ¥670.00 to ¥953.00, with a yearly change of 42.24%. Citizens's prices fluctuated between $6.64 and $9.65, with a yearly change of 45.33%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.