Gol Linhas Aéreas Inteligentes (NYSE:GOL) and American Airlines Group (NASDAQ:AAL) are both transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Gol Linhas Aéreas Inteligentes and American Airlines Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Gol Linhas Aéreas Inteligentes | 1 | 6 | 1 | 0 | 2.00 |
| American Airlines Group | 11 | 8 | 1 | 0 | 1.50 |
Gol Linhas Aéreas Inteligentes currently has a consensus target price of $9.8250, suggesting a potential upside of 26.61%. American Airlines Group has a consensus target price of $14.9375, suggesting a potential downside of 28.67%. Given Gol Linhas Aéreas Inteligentes' stronger consensus rating and higher possible upside, equities analysts clearly believe Gol Linhas Aéreas Inteligentes is more favorable than American Airlines Group.
Earnings & Valuation
This table compares Gol Linhas Aéreas Inteligentes and American Airlines Group's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Gol Linhas Aéreas Inteligentes | $3.37 billion | 0.41 | $-29,720,000.00 | $0.84 | 9.24 |
| American Airlines Group | $45.77 billion | 0.29 | $1.69 billion | $4.90 | 4.27 |
American Airlines Group has higher revenue and earnings than Gol Linhas Aéreas Inteligentes. American Airlines Group is trading at a lower price-to-earnings ratio than Gol Linhas Aéreas Inteligentes, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
1.5% of Gol Linhas Aéreas Inteligentes shares are held by institutional investors. Comparatively, 44.4% of American Airlines Group shares are held by institutional investors. 1.0% of American Airlines Group 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.
Profitability
This table compares Gol Linhas Aéreas Inteligentes and American Airlines Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Gol Linhas Aéreas Inteligentes | -59.66% | -2.17% | -5.84% |
| American Airlines Group | -25.56% | N/A | -11.06% |
Risk & Volatility
Gol Linhas Aéreas Inteligentes has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, American Airlines Group has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500.
Summary
American Airlines Group beats Gol Linhas Aéreas Inteligentes on 8 of the 13 factors compared between the two stocks.
