Thomas Cook vs TUI Which Offers More Value?

Thomas Cook and TUI Group are two major players in the travel and tourism industry, both offering a wide range of services such as flights, hotels, and package holidays. Investors often compare the stocks of these companies to assess their performance and potential for growth. Thomas Cook has faced financial struggles in recent years, leading to a decline in its stock value, while TUI has shown more stability and resilience in the market. Analyzing the performance of these two stocks can provide valuable insights for investors looking to make informed decisions in the travel sector.

Thomas Cook or TUI?

When comparing Thomas Cook 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 Thomas Cook 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. Thomas Cook has a dividend yield of 0.19%, while TUI has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Thomas Cook reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Thomas Cook P/E ratio at 35.70 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. Thomas Cook P/B ratio is 4.66 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, Thomas Cook has seen a 5-year revenue growth of -0.12%, while TUI's is -0.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Thomas Cook's ROE at 13.93% and TUI's ROE at 84.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹207.45 for Thomas Cook and €8.49 for TUI. Over the past year, Thomas Cook's prices ranged from ₹134.70 to ₹264.00, with a yearly change of 95.99%. 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.