Critical Analysis: easyJet (ESYJY) & Its Competitors

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for easyJet and its competitors, 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	4012	6591	351	2.47

As a group, “Passenger Airlines” companies have a potential upside of 12.43%. Given easyJet’s competitors stronger consensus rating and higher possible upside, analysts plainly believe easyJet has less favorable growth aspects than its competitors.

Profitability

This table compares easyJet and its competitors’ 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%

Institutional & 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

easyJet pays an annual dividend of $1.74 per share and has a dividend yield of 19.0%. 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 22.9% of their earnings in the form of a dividend.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
easyJet	N/A	N/A	2.03
easyJet Competitors	$14.26 billion	$623.26 million	16.91

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

Summary

easyJet competitors 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.