Jeju Air vs Jin Air Which Is More Attractive?

Jeju Air and Jin Air are two prominent South Korean low-cost airlines that have captured the attention of investors in recent years. Both companies have seen significant growth since their establishment, and their stocks have become popular choices for those looking to invest in the aviation industry. While both companies operate in a similar market, their business strategies, financial performances, and growth prospects may vary, making it important for investors to carefully evaluate the potential risks and rewards associated with each stock.

Jeju Air or Jin Air?

When comparing Jeju Air and Jin 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 Jeju Air and Jin 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. Jeju Air has a dividend yield of -%, while Jin Air has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Jeju Air reports a 5-year dividend growth of 0.00% year and a payout ratio of 3.60%. On the other hand, Jin Air reports a 5-year dividend growth of 0.00% year and a payout ratio of 2.12%.

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 Jeju Air P/E ratio at 7.62 and Jin Air's P/E ratio at 4.26. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Jeju Air P/B ratio is 2.11 while Jin Air's P/B ratio is 2.62.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Jeju Air has seen a 5-year revenue growth of -0.38%, while Jin Air's is -0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Jeju Air's ROE at 28.21% and Jin Air's ROE at 67.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩8830.00 for Jeju Air and ₩10210.00 for Jin Air. Over the past year, Jeju Air's prices ranged from ₩8300.00 to ₩13590.00, with a yearly change of 63.73%. Jin Air's prices fluctuated between ₩9460.00 and ₩14290.00, with a yearly change of 51.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.