TUI vs easyJet Which Should You Buy?

Both TUI and easyJet are prominent players in the aviation industry, providing travel services to individuals all over the world. While TUI focuses on package holidays and cruises, easyJet is known for its budget-friendly flights across Europe. Both companies have faced challenges in recent years, including the impact of the COVID-19 pandemic on travel demand. Investors may consider factors such as financial performance, market share, and future growth potential when deciding between TUI and easyJet stocks.

TUI or easyJet?

When comparing TUI and easyJet, 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 TUI and easyJet.

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. TUI has a dividend yield of -%, while easyJet has a dividend yield of 0.77%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. TUI reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, easyJet reports a 5-year dividend growth of 0.00% year and a payout ratio of 9.09%.

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 TUI P/E ratio at 8.06 and easyJet's P/E ratio at 11.60. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. TUI P/B ratio is 10.38 while easyJet's P/B ratio is 1.46.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, TUI has seen a 5-year revenue growth of -0.46%, while easyJet's is -0.28%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TUI's ROE at 84.10% and easyJet's ROE at 13.89%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €8.49 for TUI and $7.31 for easyJet. Over the past year, TUI's prices ranged from €5.05 to €8.88, with a yearly change of 75.77%. easyJet's prices fluctuated between $5.22 and $7.50, with a yearly change of 43.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.