T'Way Air vs Jeju Air Which Is a Smarter Choice?

T'way Air and Jeju Air are both South Korean low-cost airlines that compete in the domestic and international markets. T'way Air was founded in 2010 and Jeju Air was founded in 2005. Both companies have seen significant growth in recent years, with T'way Air expanding its fleet and route network, while Jeju Air has focused on improving its service and customer experience. Investors interested in the airline industry may find opportunities in both T'way Air and Jeju Air stocks, as they continue to innovate and grow in the competitive aviation market.

T'Way Air or Jeju Air?

When comparing T'Way Air and Jeju 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 T'Way Air and Jeju 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. T'Way Air has a dividend yield of -%, while Jeju Air has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. T'Way Air reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Jeju Air reports a 5-year dividend growth of 0.00% year and a payout ratio of 2.98%.

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 T'Way Air P/E ratio at 11.55 and Jeju Air's P/E ratio at 6.24. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. T'Way Air P/B ratio is 3.31 while Jeju Air's P/B ratio is 1.82.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, T'Way Air has seen a 5-year revenue growth of -0.41%, while Jeju Air's is -0.41%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with T'Way Air's ROE at 27.66% and Jeju Air's ROE at 32.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩2610.00 for T'Way Air and ₩8790.00 for Jeju Air. Over the past year, T'Way Air's prices ranged from ₩2210.00 to ₩3990.00, with a yearly change of 80.54%. Jeju Air's prices fluctuated between ₩8300.00 and ₩13590.00, with a yearly change of 63.73%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.