Jet2 vs TUI Which Is a Better Investment?

Jet2 and TUI are two major players in the travel and tourism industry, both offering a range of services including holiday packages, flights, and accommodations. The stocks of these companies have been closely watched by investors as they navigate through the challenges posed by the COVID-19 pandemic. Jet2 has shown resilience with a strong recovery in stock prices, while TUI has faced some setbacks due to travel restrictions. Investors are closely monitoring the performance of both companies to determine the overall outlook for the industry.

Jet2 or TUI?

When comparing Jet2 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 Jet2 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. Jet2 has a dividend yield of 0.91%, while TUI has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Jet2 reports a 5-year dividend growth of 0.00% year and a payout ratio of 6.46%. 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 Jet2 P/E ratio at 8.71 and TUI's P/E ratio at 8.06. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Jet2 P/B ratio is 2.47 while TUI's P/B ratio is 10.38.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Jet2 has seen a 5-year revenue growth of 0.38%, while TUI's is -0.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Jet2's ROE at 26.53% and TUI's ROE at 84.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £1615.00 for Jet2 and €8.49 for TUI. Over the past year, Jet2's prices ranged from £1202.00 to £1679.00, with a yearly change of 39.68%. TUI's prices fluctuated between €5.05 and €8.88, with a yearly change of 75.77%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.