Hawaiian (NASDAQ: HA) and Azul (NYSE:AZUL) are both mid-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.

Dividends

Hawaiian pays an annual dividend of $0.48 per share and has a dividend yield of 1.2%. Azul does not pay a dividend. Hawaiian pays out 13.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current recommendations for Hawaiian and Azul, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hawaiian 2 5 6 0 2.31
Azul 0 0 4 0 3.00

Hawaiian presently has a consensus price target of $47.58, indicating a potential upside of 16.34%. Azul has a consensus price target of $33.00, indicating a potential upside of 32.64%. Given Azul’s stronger consensus rating and higher possible upside, analysts plainly believe Azul is more favorable than Hawaiian.

Insider & Institutional Ownership

93.9% of Hawaiian shares are owned by institutional investors. Comparatively, 4.6% of Azul shares are owned by institutional investors. 2.3% of Hawaiian shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Hawaiian 10.36% 36.74% 10.44%
Azul N/A N/A N/A

Valuation & Earnings

This table compares Hawaiian and Azul’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hawaiian $2.45 billion 0.88 $235.43 million $3.60 11.36
Azul $1.91 billion 4.18 -$36.21 million $0.16 155.50

Hawaiian has higher revenue and earnings than Azul. Hawaiian is trading at a lower price-to-earnings ratio than Azul, indicating that it is currently the more affordable of the two stocks.

Summary

Hawaiian beats Azul on 10 of the 14 factors compared between the two stocks.

Hawaiian Company Profile

Hawaiian Holdings, Inc. is a holding company. The Company is engaged in the scheduled air transportation of passengers and cargo amongst the Hawaiian Islands (the Neighbor Island routes), between the Hawaiian Islands and certain cities in the United States (the North America routes), and between the Hawaiian Islands and the South Pacific, Australia, New Zealand and Asia (the International routes), collectively referred to as its Scheduled Operations. It offers non-stop service to Hawai’i from United States gateway cities. As of December 31, 2016, it also provided approximately 160 daily flights between the Hawaiian Islands. The Company operates various charter flights. As of December 31, 2016, the Company’s fleet consisted of 20 Boeing 717-200 aircraft for the Neighbor Island routes, eight Boeing 767-300 aircraft, and 23 Airbus A330-200 aircraft for the North America, International, and charter routes.

Azul Company Profile

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.

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