Critical Review: Ryanair Holdings PLC (RYAAY) vs. Azul Sa (AZUL)
Ryanair Holdings PLC (NASDAQ: RYAAY) and Azul Sa (NYSE:AZUL) are both mid-cap transportation companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.
Insider & Institutional Ownership
40.0% of Ryanair Holdings PLC shares are held by institutional investors. 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.
This is a summary of recent ratings for Ryanair Holdings PLC and Azul Sa, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ryanair Holdings PLC||3||1||4||0||2.13|
Ryanair Holdings PLC presently has a consensus price target of $96.00, indicating a potential downside of 13.83%. Azul Sa has a consensus price target of $33.00, indicating a potential upside of 35.91%. Given Azul Sa’s stronger consensus rating and higher probable upside, analysts plainly believe Azul Sa is more favorable than Ryanair Holdings PLC.
This table compares Ryanair Holdings PLC and Azul Sa’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ryanair Holdings PLC||21.25%||32.39%||12.71%|
Earnings & Valuation
This table compares Ryanair Holdings PLC and Azul Sa’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Ryanair Holdings PLC||$7.30 billion||3.64||$1.44 billion||$6.79||16.41|
|Azul Sa||$1.91 billion||N/A||-$36.21 million||$0.15||161.87|
Ryanair Holdings PLC has higher revenue and earnings than Azul Sa. Ryanair Holdings PLC is trading at a lower price-to-earnings ratio than Azul Sa, indicating that it is currently the more affordable of the two stocks.
Ryanair Holdings PLC beats Azul Sa on 7 of the 9 factors compared between the two stocks.
About Ryanair Holdings PLC
Ryanair Holdings plc (Ryanair Holdings) is a holding company for Ryanair Limited (Ryanair). Ryanair operates an ultra-low fare, scheduled-passenger airline serving short-haul, point-to-point routes between Ireland, the United Kingdom, Continental Europe, Morocco and Israel. Ryanair provides various ancillary services and engages in other activities connected with its core air passenger service, including non-flight scheduled services, Internet-related services, and the in-flight sale of beverages, food and merchandise. Ryanair markets accommodation services and travel insurance through its Website. It provides hotel and accommodation services. Ryanair provides its own aircraft and passenger handling and ticketing services at Dublin Airport. As of June 30, 2016, Ryanair had a principal fleet of over 350 Boeing 737-800 aircraft and offered over 2,000 scheduled short-haul flights per day serving approximately 200 airports throughout Europe.
About Azul Sa
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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