UNITED vs Delta Which Is More Profitable?

United and Delta are two major players in the airline industry, each with a long history of operation and a significant presence in the market. Both companies have faced their fair share of challenges, from economic downturns to airline regulations. Investors often compare United and Delta stocks when considering their investment options in the aviation sector. Understanding the strengths and weaknesses of each company can help investors make informed decisions about where to put their money.

UNITED or Delta?

When comparing UNITED and Delta, 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 Delta.

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 4.75%, while Delta has a dividend yield of 1.07%. 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, Delta reports a 5-year dividend growth of 4.56% 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 49.32 and Delta's P/E ratio at 20.03. 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 1.35 while Delta's P/B ratio is 1.22.

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 Delta's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UNITED's ROE at 2.56% and Delta's ROE at 6.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥764.00 for UNITED and ₹116.00 for Delta. Over the past year, UNITED's prices ranged from ¥670.00 to ¥953.00, with a yearly change of 42.24%. Delta's prices fluctuated between ₹104.45 and ₹159.80, with a yearly change of 52.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.