Gol Linhas Aereas Inteligentes (NYSE: GOL) and Spirit Airlines (NASDAQ:SAVE) are both mid-cap transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Profitability

This table compares Gol Linhas Aereas Inteligentes and Spirit Airlines’ 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%
Spirit Airlines 9.62% 17.96% 7.61%

Volatility and Risk

Gol Linhas Aereas Inteligentes has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500. Comparatively, Spirit Airlines has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.

Valuation & Earnings

This table compares Gol Linhas Aereas Inteligentes and Spirit Airlines’ 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 0.30 $346.84 million ($1.20) -19.15
Spirit Airlines $2.49 billion 1.00 $509.32 million $3.45 10.45

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

Analyst Ratings

This is a summary of current ratings and price targets for Gol Linhas Aereas Inteligentes and Spirit Airlines, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gol Linhas Aereas Inteligentes 0 2 2 0 2.50
Spirit Airlines 0 7 5 0 2.42

Gol Linhas Aereas Inteligentes currently has a consensus target price of $21.25, indicating a potential downside of 7.16%. Spirit Airlines has a consensus target price of $47.80, indicating a potential upside of 32.56%. Given Spirit Airlines’ higher probable upside, analysts plainly believe Spirit Airlines is more favorable than Gol Linhas Aereas Inteligentes.

Institutional & Insider Ownership

0.0% of Gol Linhas Aereas Inteligentes shares are held by institutional investors. Comparatively, 97.0% of Spirit Airlines shares are held by institutional investors. 0.3% of Spirit Airlines shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Spirit Airlines beats Gol Linhas Aereas Inteligentes on 10 of the 13 factors compared between the two stocks.

Gol Linhas Aereas Inteligentes Company Profile

Gol Linhas Aereas Inteligentes S.A. (GOL) is an airline company. The Company is engaged in providing mobile geolocation services to its passengers and designing a Website featuring accessibility resources to assist people with visual and motor impairments. The Company operates through two segments: Air transportation and Loyalty program. Air transportation segment operations originate from its subsidiary Gol Linhas Aereas S.A. (GLA) for the provision of air transportation services. Its operations also include cargo operations and excess baggage. Loyalty program segment operations are represented by the sale of mileage to air and non-air partner companies, which includes the management of the program, the sale of reward redemption rights and the creation and management of an individual and corporate database. The Company’s fleet has approximately 130 Boeing Boeing 737-700 and Boeing 737-800.

Spirit Airlines Company Profile

Spirit Airlines, Inc. is an airline company. The Company provides air transportation for passengers. As of December 31, 2016, its all-Airbus Fit Fleet operated over 420 daily flights to 59 destinations in the United States, Caribbean and Latin America. As of December 31, 2016, it had a fleet of 95 Airbus single-aisle aircraft, which are referred to as A320 family aircraft and include the A319, A320 and A321 models, which have common design and equipment but differ most notably in fuselage length, service range and seat capacity. As of December 31, 2016, its fleet consisted of 29 A319s, 45 A320ceos, five A320neos and 16 A321ceos. Its Bare Fares offerings are unbundled base fares that remove components included in the price of an airline ticket. It also offers Frill Control, which allows customers to pay only for the options they choose, such as bags, advance seat assignments and refreshments. As of December 31, 2016, its route network included 200 markets served by 59 airports.

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