Analyzing Gol Linhas Aereas Inteligentes (GOL) and Controladora Vuela Co Avcn SA CV (VLRS)

Gol Linhas Aereas Inteligentes (NYSE: GOL) and Controladora Vuela Co Avcn SA CV (NYSE:VLRS) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Institutional and Insider Ownership

0.9% of Gol Linhas Aereas Inteligentes shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Gol Linhas Aereas Inteligentes has a beta of 1.92, suggesting that its stock price is 92% more volatile than the S&P 500. Comparatively, Controladora Vuela Co Avcn SA CV has a beta of -0.04, suggesting that its stock price is 104% less volatile than the S&P 500.

Profitability

This table compares Gol Linhas Aereas Inteligentes and Controladora Vuela Co Avcn SA CV’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gol Linhas Aereas Inteligentes 0.08% -7.05% 2.40%
Controladora Vuela Co Avcn SA CV -1.63% -4.42% -1.92%

Valuation and Earnings

This table compares Gol Linhas Aereas Inteligentes and Controladora Vuela Co Avcn SA CV’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gol Linhas Aereas Inteligentes $3.31 billion 0.32 $6.00 million $0.27 22.85
Controladora Vuela Co Avcn SA CV $1.26 billion 0.38 -$30.12 million ($0.30) -18.07

Gol Linhas Aereas Inteligentes has higher revenue and earnings than Controladora Vuela Co Avcn SA CV. Controladora Vuela Co Avcn SA CV is trading at a lower price-to-earnings ratio than Gol Linhas Aereas Inteligentes, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for Gol Linhas Aereas Inteligentes and Controladora Vuela Co Avcn SA CV, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gol Linhas Aereas Inteligentes 0 1 2 0 2.67
Controladora Vuela Co Avcn SA CV 0 4 3 0 2.43

Gol Linhas Aereas Inteligentes currently has a consensus price target of $13.00, indicating a potential upside of 110.70%. Controladora Vuela Co Avcn SA CV has a consensus price target of $9.17, indicating a potential upside of 69.13%. Given Gol Linhas Aereas Inteligentes’ stronger consensus rating and higher possible upside, analysts plainly believe Gol Linhas Aereas Inteligentes is more favorable than Controladora Vuela Co Avcn SA CV.

Summary

Gol Linhas Aereas Inteligentes beats Controladora Vuela Co Avcn SA CV on 10 of the 13 factors compared between the two stocks.

Gol Linhas Aereas Inteligentes Company Profile

GOL Linhas Aéreas Inteligentes S.A. provides scheduled air transportation services for passengers and cargo in Brazil and Latin America. The company, through its Brazil network, offers customers approximately 700 daily flights to 66 destinations in 8 countries in South America and the Caribbean. It also provides cargo transportation and logistics services serving approximately 2,400 Brazilian municipalities, as well as through its partners serving 205 international destinations in 95 countries. In addition, the company offers SMILES coalition loyalty programs in Latin America with approximately 13 million registered participants, allowing clients to accumulate miles and redeem tickets for approximately 700 locations worldwide. It operates a fleet of 120 Boeing 737 aircraft. GOL Linhas Aéreas Inteligentes S.A. was founded in 2001 and is headquartered in Sao Paulo, Brazil.

Controladora Vuela Co Avcn SA CV Company Profile

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. provides air transportation services for passengers, cargo, and mail in Mexico and internationally. As of December 31, 2016, the company operated a fleet of 69 Airbus narrow-body aircraft, which include 15 Airbus A319s, 44 A320s, and 10 A321s. It operates approximately 302 daily flights on routes that connect 40 cities in Mexico and 22 cities in the United States and Central America. The company also offers recruitment and payroll, and merchandising services. Controladora Vuela Compañía de Aviación, S.A.B. de C.V. was founded in 2003 and is headquartered in Mexico City, Mexico.

Receive News & Ratings for Gol Linhas Aereas Inteligentes Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Gol Linhas Aereas Inteligentes and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply