Ryanair vs Spirit Airlines Which Is More Profitable?

Ryanair and Spirit Airlines are two prominent low-cost carriers in the airline industry. Both companies have experienced fluctuations in their stock prices due to various factors such as market conditions, competition, and economic events. While Ryanair is based in Europe and has a strong presence in the region, Spirit Airlines primarily operates in the United States. Investors interested in airline stocks may want to closely monitor these companies to make informed decisions about their investments.

Ryanair or Spirit Airlines?

When comparing Ryanair and Spirit Airlines, 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 Ryanair and Spirit Airlines.

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. Ryanair has a dividend yield of 4.68%, while Spirit Airlines has a dividend yield of 11.76%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ryanair reports a 5-year dividend growth of 0.00% year and a payout ratio of 12.36%. On the other hand, Spirit Airlines 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 Ryanair P/E ratio at 6.13 and Spirit Airlines's P/E ratio at -0.55. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Ryanair P/B ratio is 1.26 while Spirit Airlines's P/B ratio is 0.46.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Ryanair has seen a 5-year revenue growth of 0.58%, while Spirit Airlines's is 0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ryanair's ROE at 20.34% and Spirit Airlines's ROE at -63.51%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $45.95 for Ryanair and $2.67 for Spirit Airlines. Over the past year, Ryanair's prices ranged from $36.97 to $60.32, with a yearly change of 63.15%. Spirit Airlines's prices fluctuated between $1.40 and $17.02, with a yearly change of 1115.71%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.