UNITED vs Spirit Airlines Which Is More Profitable?

United Airlines (NASDAQ: UAL) and Spirit Airlines (NYSE: SAVE) are two prominent players in the airline industry. United is a legacy carrier with a global network and a loyal customer base, while Spirit is a low-cost carrier known for its no-frills approach and affordable fares. Both airlines have faced challenges in recent years, including volatile fuel prices and intense competition. Investors may be interested in comparing the performance of United and Spirit stocks to determine which airline offers the best investment opportunity.

UNITED or Spirit Airlines?

When comparing UNITED 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 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 has a dividend yield of 2.97%, while Spirit Airlines has a dividend yield of 27.78%. 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, 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 P/E ratio at 52.02 and Spirit Airlines's P/E ratio at -0.17. 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 Spirit Airlines's P/B ratio is 0.15.

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 Spirit Airlines's is 0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UNITED's ROE at 2.56% 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 ¥801.00 for UNITED and $1.03 for Spirit Airlines. Over the past year, UNITED's prices ranged from ¥670.00 to ¥953.00, with a yearly change of 42.24%. Spirit Airlines's prices fluctuated between $0.01 and $17.02, with a yearly change of 170050.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.