easyJet vs Wizz Air Which Is Stronger?

EasyJet and Wizz Air are two prominent low-cost airline companies that have become popular choices for budget-conscious travelers. Both companies operate in the European market and offer competitive prices for flights to various destinations. When considering investing in airline stocks, many investors may be torn between easyJet and Wizz Air. This comparison will explore key factors such as financial performance, market positioning, and growth prospects to determine which airline stock may be the better investment option.

easyJet or Wizz Air?

When comparing easyJet and Wizz 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 easyJet and Wizz 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. easyJet has a dividend yield of 0.75%, while Wizz Air 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, Wizz Air 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 11.87 and Wizz Air'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 1.49 while Wizz Air's P/B ratio is 3.83.

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 Wizz Air's is 0.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with easyJet's ROE at 13.89% and Wizz Air's ROE at 75.13%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.50 for easyJet and $16.00 for Wizz Air. Over the past year, easyJet's prices ranged from $5.22 to $7.50, with a yearly change of 43.68%. Wizz Air's prices fluctuated between $14.88 and $19.20, with a yearly change of 29.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.