Friday, August 3, 2018

easyJet (EJTTF) & Ryanair (RYAAY) Head-To-Head Review

easyJet (OTCMKTS: EJTTF) and Ryanair (NASDAQ:RYAAY) are both transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Institutional & Insider Ownership

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43.8% of Ryanair shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for easyJet and Ryanair, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
easyJet 0 1 1 0 2.50
Ryanair 1 5 2 0 2.13

Valuation and Earnings

This table compares easyJet and Ryanair’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
easyJet $6.40 billion 1.36 $386.55 million N/A N/A
Ryanair $8.37 billion 2.81 $1.70 billion $7.05 14.25

Ryanair has higher revenue and earnings than easyJet.

Profitability

This table compares easyJet and Ryanair’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
easyJet N/A N/A N/A
Ryanair 18.47% 29.19% 11.34%

Volatility & Risk

easyJet has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Ryanair has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Summary

Ryanair beats easyJet on 8 of the 10 factors compared between the two stocks.

easyJet Company Profile

easyJet plc, together with its subsidiaries, operates as an airline carrier primarily in Europe. As of September 30, 2017, it operated 862 routes and a fleet of 279 aircraft. The company also engages in the trading and leasing of aircrafts; and the provision of graphic design services. easyJet plc was founded in 1995 and is based in Luton, the United Kingdom.

Ryanair Company Profile

Ryanair Holdings plc, together with its subsidiaries, provides scheduled-passenger airline services in Ireland, the United Kingdom, continental Europe, Morocco, and Israel. It also offers various ancillary services, such as non-flight scheduled services and Internet-related services; and markets accommodation services and travel insurance through its Website, as well as engages in the in-flight sale of beverages, food, and merchandise. In addition, the company sells bus and rail tickets onboard its aircraft and through its Website; and markets car parking, attractions, and activities, as well as gift vouchers through its Website. It operates a fleet of 350 Boeing 737-800 aircraft and 33 leased aircraft; and offers approximately 2,000 scheduled short-haul flights per day serving approximately 200 airports primarily in Europe. The company was founded in 1985 and is headquartered in Swords, Ireland.

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