easyJet vs TUI Which Is a Smarter Choice?

EasyJet and TUI Group are two major players in the travel industry, each offering unique investment opportunities for those looking to capitalize on the recovery of the tourism sector. EasyJet, a budget airline, has a strong reputation for its low-cost model and extensive route network. On the other hand, TUI Group is a multinational travel company that offers a range of holiday packages and experiences. Both stocks have been impacted by the COVID-19 pandemic, making them interesting options for investors looking to potentially benefit from a rebound in travel demand.

easyJet or TUI?

When comparing easyJet and TUI, 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 TUI.

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 0.86%, while TUI has a dividend yield of -%. 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, TUI 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 10.47 and TUI's P/E ratio at 7.52. 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 1.62 while TUI's P/B ratio is 9.68.

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 TUI's is -0.43%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with easyJet's ROE at 14.38% and TUI's ROE at 84.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.59 for easyJet and €7.56 for TUI. Over the past year, easyJet's prices ranged from $5.03 to $7.36, with a yearly change of 46.32%. TUI's prices fluctuated between €5.05 and €8.04, with a yearly change of 59.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.