American Airlines Group (NASDAQ:AAL) and easyJet (OTCMKTS:EJTTF) are both transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.
Institutional & Insider 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, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares American Airlines Group and easyJet's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
American Airlines Group | $45.77 billion | 0.30 | $1.69 billion | $4.90 | 4.37 |
easyJet | $3.84 billion | 1.46 | $-1,376,700,000.00 | ($2.27) | -6.24 |
American Airlines Group has higher revenue and earnings than easyJet. easyJet is trading at a lower price-to-earnings ratio than American Airlines Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings for American Airlines Group and easyJet, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
American Airlines Group | 11 | 6 | 1 | 0 | 1.44 |
easyJet | 0 | 6 | 4 | 0 | 2.40 |
American Airlines Group presently has a consensus target price of $13.7857, indicating a potential downside of 35.58%. Given American Airlines Group's higher possible upside, equities research analysts plainly believe American Airlines Group is more favorable than easyJet.
Profitability
This table compares American Airlines Group and easyJet's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
American Airlines Group | -25.56% | N/A | -11.06% |
easyJet | N/A | N/A | N/A |
Risk and Volatility
American Airlines Group has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500. Comparatively, easyJet has a beta of 1.94, suggesting that its share price is 94% more volatile than the S&P 500.
Summary
American Airlines Group beats easyJet on 7 of the 13 factors compared between the two stocks.