Ryanair Holdings PLC (RYAAY) vs. Spirit Airlines (SAVE) Head-To-Head Survey

Ryanair Holdings PLC (NASDAQ: RYAAY) and Spirit Airlines (NASDAQ:SAVE) are both mid-cap transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Earnings and Valuation



This table compares Ryanair Holdings PLC and Spirit Airlines’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Ryanair Holdings PLC $7.30 billion 3.63 $1.44 billion $6.79 16.38
Spirit Airlines $2.32 billion 1.07 $264.87 million $3.15 11.37

Ryanair Holdings PLC has higher revenue and earnings than Spirit Airlines. Spirit Airlines is trading at a lower price-to-earnings ratio than Ryanair Holdings PLC, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Ryanair Holdings PLC and Spirit Airlines, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ryanair Holdings PLC 4 1 4 0 2.00
Spirit Airlines 1 8 3 0 2.17

Ryanair Holdings PLC presently has a consensus target price of $96.00, indicating a potential downside of 13.71%. Spirit Airlines has a consensus target price of $41.00, indicating a potential upside of 14.46%. Given Spirit Airlines’ stronger consensus rating and higher probable upside, analysts plainly believe Spirit Airlines is more favorable than Ryanair Holdings PLC.

Profitability

This table compares Ryanair Holdings PLC and Spirit Airlines’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ryanair Holdings PLC 21.25% 32.39% 12.71%
Spirit Airlines 8.55% 15.86% 6.62%

Risk and Volatility

Ryanair Holdings PLC has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Spirit Airlines has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Institutional & Insider Ownership

40.3% of Ryanair Holdings PLC shares are held by institutional investors. Comparatively, 95.4% of Spirit Airlines shares are held by institutional investors. 0.3% of Spirit Airlines shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Ryanair Holdings PLC beats Spirit Airlines on 9 of the 14 factors compared between the two stocks.

About Ryanair Holdings PLC

Ryanair Holdings plc (Ryanair Holdings) is a holding company for Ryanair Limited (Ryanair). Ryanair operates an ultra-low fare, scheduled-passenger airline serving short-haul, point-to-point routes between Ireland, the United Kingdom, Continental Europe, Morocco and Israel. Ryanair provides various ancillary services and engages in other activities connected with its core air passenger service, including non-flight scheduled services, Internet-related services, and the in-flight sale of beverages, food and merchandise. Ryanair markets accommodation services and travel insurance through its Website. It provides hotel and accommodation services. Ryanair provides its own aircraft and passenger handling and ticketing services at Dublin Airport. As of June 30, 2016, Ryanair had a principal fleet of over 350 Boeing 737-800 aircraft and offered over 2,000 scheduled short-haul flights per day serving approximately 200 airports throughout Europe.

About Spirit Airlines

Spirit Airlines, Inc. is an airline company. The Company provides air transportation for passengers. As of December 31, 2016, its all-Airbus Fit Fleet operated over 420 daily flights to 59 destinations in the United States, Caribbean and Latin America. As of December 31, 2016, it had a fleet of 95 Airbus single-aisle aircraft, which are referred to as A320 family aircraft and include the A319, A320 and A321 models, which have common design and equipment but differ most notably in fuselage length, service range and seat capacity. As of December 31, 2016, its fleet consisted of 29 A319s, 45 A320ceos, five A320neos and 16 A321ceos. Its Bare Fares offerings are unbundled base fares that remove components included in the price of an airline ticket. It also offers Frill Control, which allows customers to pay only for the options they choose, such as bags, advance seat assignments and refreshments. As of December 31, 2016, its route network included 200 markets served by 59 airports.

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