easyJet vs Jet2 Which Outperforms?

Both easyJet and Jet2 are budget airlines that operate in the highly competitive airline industry. While both companies have seen fluctuations in their stock prices over the years, easyJet has historically been the larger and more well-established airline. However, Jet2 has shown strong growth potential in recent years, leading to increased investor interest. Investors must consider factors such as financial performance, market share, and industry trends when evaluating the stocks of these two companies.

easyJet or Jet2?

When comparing easyJet and Jet2, 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 easyJet and Jet2.

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. easyJet has a dividend yield of 0.77%, while Jet2 has a dividend yield of 0.91%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. easyJet reports a 5-year dividend growth of 0.00% year and a payout ratio of 9.09%. On the other hand, Jet2 reports a 5-year dividend growth of 0.00% year and a payout ratio of 6.46%.

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 easyJet P/E ratio at 11.60 and Jet2's P/E ratio at 8.71. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. easyJet P/B ratio is 1.46 while Jet2's P/B ratio is 2.47.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, easyJet has seen a 5-year revenue growth of -0.28%, while Jet2's is 0.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with easyJet's ROE at 13.89% and Jet2's ROE at 26.53%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.31 for easyJet and £1615.00 for Jet2. Over the past year, easyJet's prices ranged from $5.22 to $7.50, with a yearly change of 43.68%. Jet2's prices fluctuated between £1202.00 and £1679.00, with a yearly change of 39.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.