Which Is A Better Pick – Delta Stock Or United Airlines?

We believe Delta stock (NYSE: DAL) and its peer United Airlines stock (NASDAQ
NDAQ
: UAL) will likely offer similar returns in the next three years. Delta is trading at 0.5x revenues compared to 0.3x for United Airlines. Investors have assigned a higher multiple to Delta due to its superior revenue growth and profitability, as discussed below.

Interestingly, both DAL and UAL have had a Sharpe Ratio of 0.1 since early 2017, which is lower than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3 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.