Critical Contrast: easyJet (ESYJY) vs. Its Competitors

easyJet (OTCMKTS:ESYJY) is one of 81 public companies in the “Passenger Airlines” industry, but how does it compare to its rivals? We will compare easyJet to similar companies based on the strength of its dividends, analyst recommendations, risk, earnings, institutional ownership, valuation and profitability.

Dividends

easyJet pays an annual dividend of $1.74 per share and has a dividend yield of 19.1%. easyJet pays out 38.5% of its earnings in the form of a dividend. As a group, “Passenger Airlines” companies pay a dividend yield of 1.5% and pay out 22.3% of their earnings in the form of a dividend.

Profitability

This table compares easyJet and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
easyJet	N/A	N/A	N/A
easyJet Competitors	-17.04%	-25.70%	-0.76%

Institutional and Insider Ownership

0.0% of easyJet shares are owned by institutional investors. Comparatively, 42.8% of shares of all “Passenger Airlines” companies are owned by institutional investors. 11.2% of shares of all “Passenger Airlines” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares easyJet and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
easyJet	N/A	N/A	2.01
easyJet Competitors	$14.23 billion	$623.26 million	17.20

easyJet’s rivals have higher revenue and earnings than easyJet. easyJet is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations for easyJet and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
easyJet	2	6	1	0	1.89
easyJet Competitors	1481	4008	6578	348	2.47

As a group, “Passenger Airlines” companies have a potential upside of 54.24%. Given easyJet’s rivals stronger consensus rating and higher probable upside, analysts plainly believe easyJet has less favorable growth aspects than its rivals.

Summary

easyJet rivals beat easyJet on 9 of the 13 factors compared.

About easyJet

easyJet plc operates as a low-cost airline carrier in Europe. The company engages in the provision of holiday packages; aircraft trading and leasing activities; development of building projects; financing and insurance business; and tour operator activities. easyJet plc was founded in 1995 and is headquartered in Luton, the United Kingdom.