Controladora Vuela Compañía de Aviación (NYSE:VLRS) and American Airlines Group (NASDAQ:AAL) are both transportation companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.
Insider & Institutional Ownership
44.4% of American Airlines Group shares are held by institutional investors. 1.0% of American Airlines Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings for Controladora Vuela Compañía de Aviación and American Airlines Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Controladora Vuela Compañía de Aviación | 0 | 0 | 5 | 0 | 3.00 |
| American Airlines Group | 8 | 7 | 1 | 0 | 1.56 |
Controladora Vuela Compañía de Aviación presently has a consensus target price of $17.0875, indicating a potential upside of 9.75%. American Airlines Group has a consensus target price of $15.5714, indicating a potential downside of 29.32%. Given Controladora Vuela Compañía de Aviación's stronger consensus rating and higher probable upside, equities research analysts clearly believe Controladora Vuela Compañía de Aviación is more favorable than American Airlines Group.
Profitability
This table compares Controladora Vuela Compañía de Aviación and American Airlines Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Controladora Vuela Compañía de Aviación | -14.67% | 90.78% | -1.24% |
| American Airlines Group | -25.56% | N/A | -11.06% |
Earnings & Valuation
This table compares Controladora Vuela Compañía de Aviación and American Airlines Group's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Controladora Vuela Compañía de Aviación | $1.84 billion | 0.91 | $140.04 million | $1.38 | 11.28 |
| American Airlines Group | $45.77 billion | 0.31 | $1.69 billion | $4.90 | 4.50 |
American Airlines Group has higher revenue and earnings than Controladora Vuela Compañía de Aviación. American Airlines Group is trading at a lower price-to-earnings ratio than Controladora Vuela Compañía de Aviación, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Controladora Vuela Compañía de Aviación has a beta of 2.66, suggesting that its share price is 166% more volatile than the S&P 500. Comparatively, American Airlines Group has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500.
Summary
Controladora Vuela Compañía de Aviación beats American Airlines Group on 8 of the 14 factors compared between the two stocks.
