Gol Linhas Aereas Inteligentes (NYSE: GOL) and SkyWest (NASDAQ:SKYW) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
Insider & Institutional Ownership
0.3% of Gol Linhas Aereas Inteligentes shares are held by institutional investors. Comparatively, 90.8% of SkyWest shares are held by institutional investors. 3.5% of SkyWest shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a breakdown of current ratings and price targets for Gol Linhas Aereas Inteligentes and SkyWest, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gol Linhas Aereas Inteligentes||0||2||2||0||2.50|
Gol Linhas Aereas Inteligentes presently has a consensus price target of $24.50, suggesting a potential upside of 166.88%. SkyWest has a consensus price target of $54.00, suggesting a potential upside of 1.41%. Given Gol Linhas Aereas Inteligentes’ higher probable upside, research analysts clearly believe Gol Linhas Aereas Inteligentes is more favorable than SkyWest.
Earnings and Valuation
This table compares Gol Linhas Aereas Inteligentes and SkyWest’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gol Linhas Aereas Inteligentes||$2.85 billion||0.56||$243.58 million||$0.05||183.60|
|SkyWest||$3.12 billion||0.88||-$161.58 million||($2.60)||-20.48|
Gol Linhas Aereas Inteligentes has higher earnings, but lower revenue than SkyWest. SkyWest is trading at a lower price-to-earnings ratio than Gol Linhas Aereas Inteligentes, indicating that it is currently the more affordable of the two stocks.
SkyWest pays an annual dividend of $0.32 per share and has a dividend yield of 0.6%. Gol Linhas Aereas Inteligentes does not pay a dividend. SkyWest pays out -12.3% of its earnings in the form of a dividend.
Volatility and Risk
Gol Linhas Aereas Inteligentes has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500. Comparatively, SkyWest has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500.
This table compares Gol Linhas Aereas Inteligentes and SkyWest’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gol Linhas Aereas Inteligentes||-0.05%||N/A||-0.06%|
SkyWest beats Gol Linhas Aereas Inteligentes on 10 of the 16 factors compared between the two stocks.
About Gol Linhas Aereas Inteligentes
Gol Linhas Aereas Inteligentes SA is a Brazil-based airline company. The Company focuses on carrying passengers to over 60 destinations, approximately 50 in Brazil and 10 in South America and the Caribbean. The Company’s fleet includes approximately 120 Boeing 737 aircrafts. The Company operates through two segments: Air transportation and Loyalty program. The Air transportation segment operations originate from its subsidiary Gol Linhas Aereas SA (GLA) for the provision of air transportation services. Its operations also include cargo operations and excess baggage. The Loyalty program segment operations are represented by SMILES coalition loyalty program, which enables clients to accumulate miles and redeem tickets for more than 700 locations worldwide.
SkyWest, Inc. is the holding company for two scheduled passenger airline operations and an aircraft leasing company. SkyWest’s airline companies provide commercial air service in cities throughout North America with nearly 3,000 daily flights carrying more than 53 million passengers annually. SkyWest Airlines operates through partnerships with United Airlines, Delta Air Lines, American Airlines and Alaska Airlines. ExpressJet Airlines operates through partnerships with United Airlines, Delta Air Lines and American Airlines. Based in St. George, Utah, SkyWest employs nearly 17,000 employees.
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