Analyzing Gol Linhas Aereas Inteligentes (GOL) and JetBlue Airways Corporation (JBLU)

Gol Linhas Aereas Inteligentes (NYSE: GOL) and JetBlue Airways Corporation (NASDAQ:JBLU) are both mid-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.

Institutional & Insider Ownership

0.0% of Gol Linhas Aereas Inteligentes shares are owned by institutional investors. Comparatively, 84.5% of JetBlue Airways Corporation shares are owned by institutional investors. 0.6% of JetBlue Airways Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Gol Linhas Aereas Inteligentes has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500. Comparatively, JetBlue Airways Corporation has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Profitability

This table compares Gol Linhas Aereas Inteligentes and JetBlue Airways Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gol Linhas Aereas Inteligentes -2.70% -9.77% -3.27%
JetBlue Airways Corporation 9.78% 16.75% 6.99%

Valuation & Earnings

This table compares Gol Linhas Aereas Inteligentes and JetBlue Airways Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gol Linhas Aereas Inteligentes $3.12 billion 0.54 $346.84 million ($1.20) -20.42
JetBlue Airways Corporation $6.82 billion 0.99 $1.54 billion $1.97 10.42

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Gol Linhas Aereas Inteligentes and JetBlue Airways Corporation, 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
JetBlue Airways Corporation 1 8 5 0 2.29

Gol Linhas Aereas Inteligentes currently has a consensus price target of $21.25, suggesting a potential downside of 12.91%. JetBlue Airways Corporation has a consensus price target of $25.09, suggesting a potential upside of 22.22%. Given JetBlue Airways Corporation’s higher possible upside, analysts plainly believe JetBlue Airways Corporation is more favorable than Gol Linhas Aereas Inteligentes.

Summary

JetBlue Airways Corporation beats Gol Linhas Aereas Inteligentes on 11 of the 13 factors compared between the two stocks.

Gol Linhas Aereas Inteligentes Company Profile

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.

JetBlue Airways Corporation Company Profile

JetBlue Airways Corporation is a passenger carrier company. The Company provides air transportation services across the United States, the Caribbean and Latin America. Its segments include Domestic, and Caribbean & Latin America. It operates various kinds of aircrafts, including Airbus A321, Airbus A320 and Embraer E190. It also provides premium transcontinental product called Mint. As of December 31, 2016, Mint included 16 fully lie-flat seats, four of which were in suites with a privacy door. The Company also provides Fly-Fi in-flight Internet service across its Airbus fleet. It provides its customers a choice to purchase tickets from three branded fares, which include Blue, Blue Plus and Blue Flex. Each of these fare include different offerings, such as free checked bags, reduced change fees and additional TrueBlue points. As of December 31, 2016, its Airbus A321 aircraft in a single cabin layout had 200 seats and those with Mint premium service had a seating capacity of 159 seats.

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