Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE: VLRS) and Republic Airways Holdings (NASDAQ:RJET) are both small-cap regional airlines companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Controladora Vuela Compania de Aviacion, S.A.B. de C.V. and Republic Airways Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Controladora Vuela Compania de Aviacion, S.A.B. de C.V. -1.07% -2.76% -1.27%
Republic Airways Holdings -127.81% -1,049.84% -43.36%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Controladora Vuela Compania de Aviacion, S.A.B. de C.V. and Republic Airways Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Controladora Vuela Compania de Aviacion, S.A.B. de C.V. 0 4 3 0 2.43
Republic Airways Holdings 0 0 0 0 N/A

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. currently has a consensus price target of $15.70, indicating a potential upside of 61.69%. Given Controladora Vuela Compania de Aviacion, S.A.B. de C.V.’s higher probable upside, analysts plainly believe Controladora Vuela Compania de Aviacion, S.A.B. de C.V. is more favorable than Republic Airways Holdings.

Valuation & Earnings

This table compares Controladora Vuela Compania de Aviacion, S.A.B. de C.V. and Republic Airways Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Controladora Vuela Compania de Aviacion, S.A.B. de C.V. $1.14 billion 0.75 $188.64 million ($0.09) -107.89
Republic Airways Holdings N/A N/A N/A ($13.48) -0.10

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. has higher revenue and earnings than Republic Airways Holdings. Controladora Vuela Compania de Aviacion, S.A.B. de C.V. is trading at a lower price-to-earnings ratio than Republic Airways Holdings, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. has a beta of -0.06, suggesting that its stock price is 106% less volatile than the S&P 500. Comparatively, Republic Airways Holdings has a beta of 3.56, suggesting that its stock price is 256% more volatile than the S&P 500.

Summary

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. beats Republic Airways Holdings on 7 of the 8 factors compared between the two stocks.

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. Company Profile

Controladora Vuela Compania de Aviacion SAB de CV is a Mexico-based company engaged in the airline passenger transportation sector. The Company operates as an ultra-low-cost carrier (ULCC). Its activities are divided into two geographical regions: Mexico (national operations), as well as the Unites States and Central America (international operations). The Company offers direct, point-to-point flights. The Company serves through secondary, lower cost airports and provides a single class of service. Its fleet includes a number of Airbus aircrafts, such as A319, A320 and A321. The Company operates through Comercializadora Volaris SA de CV, Servicios Corporativos Volaris SA de CV and Servicios Operativos Terrestres Volaris SA de CV, among others.

Republic Airways Holdings Company Profile

Republic Airways Holdings Inc. is a holding company. The Company offers scheduled passenger services through its operating air carrier subsidiaries, Shuttle America Corporation (Shuttle) and Republic Airline Inc. (Republic). The Company’s subsidiaries offer scheduled passenger service on approximately 1,090 flights daily to approximately 120 cities in over 40 states and Canada under scheduled passenger service through its fixed-fee code-share agreements with United Continental Holdings, Inc. (United), Delta Air Lines, Inc. (Delta), and American Airlines Group, Inc. (American). The Company provides its partners with fixed-fee regional airline services, operating as United Express, Delta Connection, or American Eagle, including service out of their hubs and focus cities. It provides approximately 550 flights per day as American Eagle. It provides approximately 250 flights per day as Delta Connection. It provides approximately 300 flights per day as United Express.

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