{"id":60344,"date":"2023-09-13T06:36:01","date_gmt":"2023-09-13T10:36:01","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/which-is-a-better-pick-alaska-air-or-ual-stock\/"},"modified":"2023-09-13T06:36:04","modified_gmt":"2023-09-13T10:36:04","slug":"which-is-a-better-pick-alaska-air-or-ual-stock","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=60344","title":{"rendered":"Which Is A Better Pick \u2013 Alaska Air Or UAL Stock?"},"content":{"rendered":"
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Given its attractive valuation, we believe Alaska Air stock<\/strong> (NYSE: ALK) is a better pick than its peer United Airlines stock<\/strong> (NASDAQ
\n NDAQ
\n <\/fbs-ticker>: UAL). If we look at stock returns, United Airlines, with 26% returns this year, has fared much better than Alaska Air, down 6%, and the broader S&P 500 index, up 17%. There is more to the comparison, and in the sections below, we discuss why we believe ALK will offer better returns than UAL in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Alaska Air vs. United Airlines<\/strong>: Which Stock Is A Better Bet?<\/strong> Parts of the analysis are summarized below.<\/p>\n

Interestingly, ALK has had a Sharpe Ratio of -0.1 <\/strong>while the figure stood at 0.1<\/strong> for UAL, lower than 0.6<\/strong> for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3<\/strong> for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.<\/p>\n

1. United Airlines\u2019 Revenue Growth Is Slightly Better<\/strong><\/p>\n