TUI vs Jet2 Which Is Stronger?

TUI and Jet2 are two major players in the airline and travel industries, both offering a range of services including flights, package holidays, and accommodation. TUI, based in Germany, is one of the largest tour operators in Europe, while Jet2, a UK-based company, has seen significant growth in recent years. Investors looking to capitalize on the travel sector may be interested in comparing the performance of these two stocks to see which offers the most potential for returns.

TUI or Jet2?

When comparing TUI and Jet2, 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 Jet2.

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 Jet2 has a dividend yield of 0.91%. 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, Jet2 reports a 5-year dividend growth of 0.00% year and a payout ratio of 6.46%.

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 7.94 and Jet2's P/E ratio at 8.73. 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 10.22 while Jet2's P/B ratio is 2.47.

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 Jet2's is 0.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TUI's ROE at 84.10% and Jet2's ROE at 26.53%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €8.38 for TUI and £1604.00 for Jet2. Over the past year, TUI's prices ranged from €5.05 to €8.53, with a yearly change of 68.84%. Jet2's prices fluctuated between £1202.00 and £1676.00, with a yearly change of 39.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.