Over the past three months, one of the top growth leaders in the S&P 500 index has been the Passenger Airlines industry (+22.5%).
The largest (by market capitalization) companies in this industry: Delta Air Lines ($33.1B), the world’s largest airline with a network of more than 300 destinations in more than 50 countries, and United Airlines Holdings ($72.2B), which specializes in long-haul air transportation in the United States.
Based on the latest quarterly reporting data, we analyzed each company’s profitability, strength, and efficiency criteria using the methodology of Stanford University professor Joseph Piotroski.
As we can see, in terms of fundamental data, Delta Air Lines demonstrates stronger results. The company outperforms its competitor United Airlines Holdings in terms of profitability and efficiency.
Over the past 3 months, Delta Air Lines shares have risen by +19.3%, and United Airlines Holdings by +39.4% (the S&P 500 index is up +3.5%). Both companies showed better results compared to the index.
So, the winner in this issue is Delta Air Lines. Although United Airlines Holdings’ shares show better returns, Delta Air Lines’ business is superior in terms of change in return on assets and operating margin.
* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
