easyJet vs Spirit Airlines Which Is More Favorable?

easyJet and Spirit Airlines are two well-known low-cost airlines that cater to budget-conscious travelers. Both companies have seen fluctuations in their stock prices due to various factors such as fuel costs, competition, and consumer demand. While easyJet is based in Europe and has a larger market presence, Spirit Airlines operates primarily in the United States. Investors interested in airline stocks may find value in comparing the performance and prospects of these two airlines to make informed investment decisions.

easyJet or Spirit Airlines?

When comparing easyJet and Spirit Airlines, 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 Spirit Airlines.

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 0.81%, while Spirit Airlines has a dividend yield of 11.76%. 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, Spirit Airlines reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 10.91 and Spirit Airlines's P/E ratio at -0.55. 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 1.69 while Spirit Airlines's P/B ratio is 0.46.

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 -0.27%, while Spirit Airlines's is 0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with easyJet's ROE at 14.38% and Spirit Airlines's ROE at -63.51%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.00 for easyJet and $2.67 for Spirit Airlines. Over the past year, easyJet's prices ranged from $5.03 to $7.36, with a yearly change of 46.32%. Spirit Airlines's prices fluctuated between $1.40 and $17.02, with a yearly change of 1115.71%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.