Virgin America (NASDAQ: VA) is one of 31 publicly-traded companies in the “Airlines” industry, but how does it compare to its rivals? We will compare Virgin America to similar companies based on the strength of its risk, analyst recommendations, valuation, earnings, profitability, dividends and institutional ownership.

Volatility and Risk

Virgin America has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Virgin America’s rivals have a beta of 1.20, indicating that their average stock price is 20% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Virgin America and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Virgin America 1 2 0 0 1.67
Virgin America Competitors 317 1136 2183 104 2.55

Virgin America currently has a consensus price target of $57.00, suggesting a potential upside of 0.04%. As a group, “Airlines” companies have a potential downside of 5.90%. Given Virgin America’s higher probable upside, research analysts plainly believe Virgin America is more favorable than its rivals.

Profitability

This table compares Virgin America and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Virgin America 11.64% 22.78% 10.96%
Virgin America Competitors 3.58% 9.88% 3.39%

Institutional & Insider Ownership

65.6% of Virgin America shares are held by institutional investors. Comparatively, 78.9% of shares of all “Airlines” companies are held by institutional investors. 31.2% of Virgin America shares are held by company insiders. Comparatively, 5.5% of shares of all “Airlines” companies are held by company 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.

Earnings & Valuation

This table compares Virgin America and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Virgin America N/A N/A 7.99
Virgin America Competitors $8.61 billion $1.57 billion -83.61

Virgin America’s rivals have higher revenue and earnings than Virgin America. Virgin America is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Virgin America beats its rivals on 6 of the 11 factors compared.

About Virgin America

Virgin America Inc. is an airline that provides scheduled air travel in the United States and Mexico. The Company operates in air transportation service segment. The Company operates from Los Angeles and San Francisco with a presence at Dallas Love Field (DAL) to other destinations in North America. The Company provides service to over 20 airports in the United States and Mexico with a fleet of over 60 narrow-body aircraft. It offers three levels of service: First Class, Main Cabin Select and Main Cabin. The Company’s First Class level of service includes eight-seat cabin with an inflight teammate to provide service. Its Main Cabin Select includes approximately 40 inches of pitch for leg room. The Company’s Main Cabin includes approximately 30 inches of pitch and individual Red inflight entertainment system at every seatback. The Company maintains a guest loyalty program called the Elevate frequent flyer program.

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