Better Buy: Boeing or Delta Air Lines?
Is it better to buy stock in an airline, namely Delta Air Lines (NYSE: DAL), or buy shares in one of the airplane manufacturers that supply it, like Boeing (NYSE: BA)? Of course, prospects for the two are linked, but there are some critical differences between them, and contemplating them reveals a lot about the investment case for each stock. Here's the lowdown.
The two hit the headlines in the summer when Delta placed its first significant order from Boeing in over a decade. The order was seen as a shot in the arm for Boeing and its narrow body workhorse of the skies; the Boeing 737 MAX. However, it also highlighted that both companies' prospects are intrinsically tied to the commercial aviation industry. Boeing does have sizable defense interests too, but the swing factor in its earnings is its commercial airplanes segment.
It's an argument that appears to be reflected in the share price performance over the last five years.
Source Fool.com
