Ryanair Holdings PLC (NASDAQ: RYAAY) and Azul Sa (NYSE:AZUL) are both transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

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%
Azul Sa N/A N/A N/A

Valuation & Earnings

This table compares Ryanair Holdings PLC and Azul Sa’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Ryanair Holdings PLC $7.30 billion 3.67 $1.44 billion $6.79 16.56
Azul Sa $1.91 billion N/A -$36.21 million N/A N/A

Ryanair Holdings PLC has higher revenue and earnings than Azul Sa.

Analyst Ratings

This is a summary of recent recommendations and price targets for Ryanair Holdings PLC and Azul Sa, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ryanair Holdings PLC 3 1 4 0 2.13
Azul Sa 0 0 4 0 3.00

Ryanair Holdings PLC presently has a consensus target price of $96.00, suggesting a potential downside of 14.60%. Azul Sa has a consensus target price of $33.00, suggesting a potential upside of 37.79%. Given Azul Sa’s stronger consensus rating and higher possible upside, analysts clearly believe Azul Sa is more favorable than Ryanair Holdings PLC.

Insider & Institutional Ownership

40.0% of Ryanair Holdings PLC shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Ryanair Holdings PLC beats Azul Sa on 6 of the 8 factors compared between the two stocks.

Ryanair Holdings PLC Company Profile

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.

Azul Sa 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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