TUI vs Thomas Cook Which Is More Favorable?

TUI Group and Thomas Cook Group are two major players in the travel and tourism industry, both offering a range of services including package holidays, flights, and accommodations. Their stocks are closely watched by investors due to their exposure to global economic conditions, regulatory changes, and consumer trends. TUI Group has a larger market capitalization and a more diverse geographical presence, while Thomas Cook has faced financial difficulties in recent years. Analyzing the performance and prospects of these stocks requires a careful consideration of various factors impacting the industry.

TUI or Thomas Cook?

When comparing TUI and Thomas Cook, 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 Thomas Cook.

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 Thomas Cook has a dividend yield of 0.18%. 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, Thomas Cook 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 TUI P/E ratio at 8.21 and Thomas Cook's P/E ratio at 36.39. 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 10.57 while Thomas Cook's P/B ratio is 4.75.

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 Thomas Cook's is -0.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TUI's ROE at 84.10% and Thomas Cook's ROE at 13.93%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €7.74 for TUI and ₹216.13 for Thomas Cook. Over the past year, TUI's prices ranged from €5.05 to €8.78, with a yearly change of 73.75%. Thomas Cook's prices fluctuated between ₹134.70 and ₹264.00, with a yearly change of 95.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.