Analyzing Era Group (ERA) and Gol Linhas Aereas Inteligentes (GOL)

Era Group (NYSE: ERA) and Gol Linhas Aereas Inteligentes (NYSE:GOL) are both transportation companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for Era Group and Gol Linhas Aereas Inteligentes, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Era Group 0 0 0 0 N/A
Gol Linhas Aereas Inteligentes 0 3 2 0 2.40

Gol Linhas Aereas Inteligentes has a consensus target price of $21.25, suggesting a potential upside of 5.20%. Given Gol Linhas Aereas Inteligentes’ higher probable upside, analysts plainly believe Gol Linhas Aereas Inteligentes is more favorable than Era Group.

Profitability

This table compares Era Group and Gol Linhas Aereas Inteligentes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Era Group -6.21% -3.10% -1.52%
Gol Linhas Aereas Inteligentes -2.70% -9.77% -3.27%

Valuation & Earnings

This table compares Era Group and Gol Linhas Aereas Inteligentes’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Era Group $233.70 million 0.90 $37.33 million ($0.70) -14.17
Gol Linhas Aereas Inteligentes $3.13 billion 0.26 $347.66 million ($1.20) -16.90

Gol Linhas Aereas Inteligentes has higher revenue and earnings than Era Group. Gol Linhas Aereas Inteligentes is trading at a lower price-to-earnings ratio than Era Group, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

86.8% of Era Group shares are held by institutional investors. Comparatively, 0.0% of Gol Linhas Aereas Inteligentes shares are held by institutional investors. 7.5% of Era Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Era Group has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Gol Linhas Aereas Inteligentes has a beta of 2, indicating that its stock price is 100% more volatile than the S&P 500.

Era Group Company Profile

Era Group Inc. is engaged in operating helicopters. The Company’s helicopters transport personnel to, from and between offshore oil and gas production platforms, drilling rigs and other installations. The Company also dry-leases helicopters to third-party helicopter operators and foreign affiliates. The primary users of the Company’s helicopter services are international, integrated and independent oil and gas exploration, development and production companies. In addition to serving the oil and gas industry, it provides air medical services; utility services, including support of firefighting, mining, power line and pipeline survey activities, and Alaska flightseeing tours, among other activities. It owns and operates a range of classes of helicopters, such as Heavy helicopters, Medium helicopters and Light helicopters. Heavy helicopters have twin engines and passenger capacity ranging from 16 to 19. Medium helicopters have twin engines and passenger capacity ranging from 11 to 12.

Gol Linhas Aereas Inteligentes Company Profile

Gol Linhas Aereas Inteligentes S.A. (GOL) is an airline company. The Company is engaged in providing mobile geolocation services to its passengers and designing a Website featuring accessibility resources to assist people with visual and motor impairments. The Company operates through two segments: Air transportation and Loyalty program. Air transportation segment operations originate from its subsidiary Gol Linhas Aereas S.A. (GLA) for the provision of air transportation services. Its operations also include cargo operations and excess baggage. Loyalty program segment operations are represented by the sale of mileage to air and non-air partner companies, which includes the management of the program, the sale of reward redemption rights and the creation and management of an individual and corporate database. The Company’s fleet has approximately 130 Boeing Boeing 737-700 and Boeing 737-800.

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