Expedia vs Ryanair Which Offers More Value?

Expedia Group Inc. and Ryanair Holdings PLC are two companies in the travel industry that have been impacted differently by the COVID-19 pandemic. Expedia, a leading online travel agency, saw a significant decline in bookings and revenue due to travel restrictions and lockdowns. On the other hand, Ryanair, a budget airline, faced challenges but managed to stay afloat with cost-cutting measures and a focus on domestic routes. Investors are closely monitoring the performance of both stocks as the travel industry continues to recover.

Expedia or Ryanair?

When comparing Expedia and Ryanair, 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 Expedia and Ryanair.

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. Expedia has a dividend yield of -%, while Ryanair has a dividend yield of 3.99%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Expedia reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Ryanair reports a 5-year dividend growth of 0.00% year and a payout ratio of 13.04%.

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 Expedia P/E ratio at 23.14 and Ryanair's P/E ratio at 6.35. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Expedia P/B ratio is 18.68 while Ryanair's P/B ratio is 1.25.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Expedia has seen a 5-year revenue growth of 0.18%, while Ryanair's is 0.58%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Expedia's ROE at 92.08% and Ryanair's ROE at 19.70%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $188.75 for Expedia and $45.56 for Ryanair. Over the past year, Expedia's prices ranged from $107.25 to $192.34, with a yearly change of 79.34%. Ryanair's prices fluctuated between $36.97 and $60.32, with a yearly change of 63.15%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.