Spirit Airlines vs Ryanair

Spirit Airlines and Ryanair are two well-known budget airlines that have been competing in the market for a long time. Both companies have seen fluctuations in their stock prices over the years, with investors closely monitoring their performance. Spirit Airlines, based in the US, operates domestic and international flights, while Ryanair, based in Ireland, is known for its extensive network of low-cost flights across Europe. This comparison will delve into the key factors that influence the stock prices of these two airlines.

Spirit Airlines or Ryanair?

When comparing Spirit Airlines 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 Spirit Airlines 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. Spirit Airlines has a dividend yield of 30.67%, while Ryanair has a dividend yield of 4.77%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Spirit Airlines 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 12.36%.

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 Spirit Airlines P/E ratio at -0.26 and Ryanair's P/E ratio at 5.77. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Spirit Airlines P/B ratio is 0.22 while Ryanair's P/B ratio is 1.19.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.62 for Spirit Airlines and $44.39 for Ryanair. Over the past year, Spirit Airlines's prices ranged from $1.40 to $17.49, with a yearly change of 1149.29%. Ryanair's prices fluctuated between $34.89 and $60.32, with a yearly change of 72.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.