Azul (NYSE: AZUL) and Virgin America (NASDAQ:VA) are both transportation companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Profitability

This table compares Azul and Virgin America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Azul N/A N/A N/A
Virgin America 11.64% 22.78% 10.96%

Earnings and Valuation

This table compares Azul and Virgin America’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Azul $1.91 billion 4.19 -$36.21 million N/A N/A
Virgin America N/A N/A N/A $6.68 8.53

Virgin America has lower revenue, but higher earnings than Azul.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Azul and Virgin America, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Azul 0 0 4 0 3.00
Virgin America 0 0 0 0 N/A

Azul presently has a consensus price target of $33.00, indicating a potential upside of 32.48%. Given Azul’s higher probable upside, equities analysts clearly believe Azul is more favorable than Virgin America.

Institutional and Insider Ownership

4.6% of Azul shares are held by institutional investors. Comparatively, 65.6% of Virgin America shares are held by institutional investors. 31.2% of Virgin America shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Virgin America beats Azul on 5 of the 8 factors compared between the two stocks.

About Azul

Azul SA is a Brazil-based company engaged in the provision of passenger transportation services. The Company primarily acts as an airline operator under the Azul brand name. The Company provides scheduled flights between numerous cities in Brazil, including Sao Paulo, Brasilia, Rio de Janeiro, Belo Horizonte, Porto Alegre, Curitiba, Manaus, Cuiaba, Fortaleza and Salvador, among others. In addition, its air network comprises international routes to the Unites States, Europe and other Latin American countries. The Company also offers Azul Cargo Express, a scheduled cargo transport service with airport-to-airport and door-to-door delivery. It owns a number of subsidiaries, such as Azul Linhas Aereas Brasileiras SA and Tudo Azul SA.

About Virgin America

Virgin America Inc. is an airline that provides scheduled air travel in the United States and Mexico. The Company operates in air transportation service segment. The Company operates from Los Angeles and San Francisco with a presence at Dallas Love Field (DAL) to other destinations in North America. The Company provides service to over 20 airports in the United States and Mexico with a fleet of over 60 narrow-body aircraft. It offers three levels of service: First Class, Main Cabin Select and Main Cabin. The Company’s First Class level of service includes eight-seat cabin with an inflight teammate to provide service. Its Main Cabin Select includes approximately 40 inches of pitch for leg room. The Company’s Main Cabin includes approximately 30 inches of pitch and individual Red inflight entertainment system at every seatback. The Company maintains a guest loyalty program called the Elevate frequent flyer program.

Receive News & Ratings for Azul Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Azul and related companies with Analyst Ratings Network's FREE daily email newsletter.