Air Busan vs Jeju Air Which Offers More Value?

Air Busan and Jeju Air are two prominent players in the South Korean aviation industry, with both companies offering domestic and international flights. While Air Busan is known for its extensive network and high-quality service, Jeju Air has carved a niche for itself as a budget airline catering to budget-conscious travelers. Investors looking into these stocks may want to consider factors such as market competition, fleet size, financial performance, and overall growth potential to make informed investment decisions.

Air Busan or Jeju Air?

When comparing Air Busan and Jeju Air, 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 Air Busan and Jeju Air.

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. Air Busan has a dividend yield of -%, while Jeju Air has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Air Busan reports a 5-year dividend growth of 0.00% year and a payout ratio of 13.68%. On the other hand, Jeju Air reports a 5-year dividend growth of 0.00% year and a payout ratio of 3.60%.

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 Air Busan P/E ratio at 3.29 and Jeju Air's P/E ratio at 7.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Air Busan P/B ratio is 1.68 while Jeju Air's P/B ratio is 2.13.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Air Busan has seen a 5-year revenue growth of -0.70%, while Jeju Air's is -0.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air Busan's ROE at 45.88% and Jeju Air's ROE at 28.21%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩2320.00 for Air Busan and ₩8910.00 for Jeju Air. Over the past year, Air Busan's prices ranged from ₩2190.00 to ₩3460.00, with a yearly change of 57.99%. Jeju Air's prices fluctuated between ₩8300.00 and ₩13590.00, with a yearly change of 63.73%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.