Wizz Air vs Ryanair Which Is More Lucrative?

Wizz Air and Ryanair are two of the most popular low-cost airlines in Europe, offering competitive fares and a wide range of destinations. Both companies have seen significant growth in recent years, with their stocks becoming increasingly attractive to investors. Wizz Air has gained a reputation for its strong focus on Eastern European markets, while Ryanair is known for its extensive route network and cost-cutting measures. Investors looking to capitalize on the growing demand for budget air travel may find both stocks appealing options for their portfolio.

Wizz Air or Ryanair?

When comparing Wizz Air and Ryanair, 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 Wizz Air and Ryanair.

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. Wizz Air has a dividend yield of -%, while Ryanair has a dividend yield of 4.03%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Wizz Air reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Ryanair reports a 5-year dividend growth of 0.00% year and a payout ratio of 13.04%.

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 Wizz Air P/E ratio at 8.67 and Ryanair's P/E ratio at 6.27. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Wizz Air P/B ratio is 3.82 while Ryanair's P/B ratio is 1.24.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Wizz Air has seen a 5-year revenue growth of 0.31%, while Ryanair's is 0.58%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Wizz Air's ROE at 75.13% and Ryanair's ROE at 19.70%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $16.00 for Wizz Air and $45.07 for Ryanair. Over the past year, Wizz Air's prices ranged from $14.88 to $19.20, with a yearly change of 29.03%. Ryanair's prices fluctuated between $36.97 and $60.32, with a yearly change of 63.15%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.