Critical Analysis: easyJet (ESYJY) vs. Its Rivals

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

Profitability

This table compares easyJet and its peers’ 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	-17.59%	-6.99%	-0.38%

Analyst Recommendations

This is a summary of current ratings for easyJet and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
easyJet	2	6	1	0	1.89
easyJet Competitors	1483	4014	6591	351	2.47

As a group, “Passenger Airlines” companies have a potential upside of 8.78%. Given easyJet’s peers stronger consensus rating and higher possible upside, analysts plainly believe easyJet has less favorable growth aspects than its peers.

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 1.6% and pay out 23.6% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares easyJet and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
easyJet	N/A	N/A	2.02
easyJet Competitors	$14.22 billion	$623.26 million	17.58

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

Institutional and Insider Ownership

0.0% of easyJet shares are held by institutional investors. Comparatively, 42.8% of shares of all “Passenger Airlines” companies are held by institutional investors. 11.2% of shares of all “Passenger Airlines” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

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

easyJet Company Profile

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.