Reviewing Hawaiian (HA) & Great Lakes Aviation (GLUX)

Hawaiian (NASDAQ:HA) and Great Lakes Aviation (OTCMKTS:GLUX) are both small-cap transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Institutional and Insider Ownership

87.3% of Hawaiian shares are owned by institutional investors. 1.7% of Hawaiian shares are owned by insiders. Comparatively, 63.0% of Great Lakes Aviation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Hawaiian and Great Lakes Aviation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hawaiian 2 5 4 0 2.18
Great Lakes Aviation 0 0 0 0 N/A

Hawaiian presently has a consensus target price of $45.36, indicating a potential upside of 26.78%. Given Hawaiian’s higher probable upside, equities research analysts plainly believe Hawaiian is more favorable than Great Lakes Aviation.

Profitability

This table compares Hawaiian and Great Lakes Aviation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hawaiian 13.22% 30.56% 9.18%
Great Lakes Aviation N/A N/A N/A

Valuation and Earnings

This table compares Hawaiian and Great Lakes Aviation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hawaiian $2.70 billion 0.66 $364.04 million $5.64 6.34
Great Lakes Aviation N/A N/A N/A N/A N/A

Hawaiian has higher revenue and earnings than Great Lakes Aviation.

Dividends

Hawaiian pays an annual dividend of $0.48 per share and has a dividend yield of 1.3%. Great Lakes Aviation does not pay a dividend. Hawaiian pays out 8.5% of its earnings in the form of a dividend.

Volatility & Risk

Hawaiian has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Great Lakes Aviation has a beta of 3.33, indicating that its share price is 233% more volatile than the S&P 500.

Summary

Hawaiian beats Great Lakes Aviation on 8 of the 11 factors compared between the two stocks.

Hawaiian Company Profile

Hawaiian Holdings, Inc., through its subsidiary, engages in the scheduled air transportation of passengers and cargo. The company offers daily services on North America routes between the State of Hawai'i and Los Angeles, Oakland, Sacramento, San Diego, San Francisco, and San Jose, California; Las Vegas, Nevada; Phoenix, Arizona; Portland, Oregon; and Seattle, Washington. It also provides daily service on Neighbor Island routes among the six islands of the State of Hawai'I; and international routes between the State of Hawai'i and Sydney, Australia, as well as Tokyo and Osaka, Japan. In addition, the company offers scheduled service between the State of Hawai'i and New York City, New York; Pago Pago, American Samoa; Papeete, Tahiti; Brisbane, Australia; Auckland, New Zealand; Sapporo, Japan; Seoul, South Korea; and Beijing, China, as well as various ad hoc charters. Hawaiian Holdings, Inc. distributes its tickets through various distribution channels, including its Website hawaiianairlines.com primarily for North America and Neighbor Island routes, as well as through travel agencies and wholesale distributors for its international routes. As of December 31, 2017, the company's fleet consisted of 20 Boeing 717-200 aircraft for the Neighbor Island routes; 8 Boeing 767-300 aircraft; 24 Airbus A330-200 aircraft; and 2 Airbus A321-200 for the North America, international, and charter routes, as well as owns 3 ATR42 aircraft. Hawaiian Holdings, Inc. was founded in 1929 and is headquartered in Honolulu, Hawaii.

Great Lakes Aviation Company Profile

Great Lakes Aviation, Ltd., a regional airline company, operates as an independent carrier and code share partner with United Air Lines, Inc. in the United States. The company offers scheduled air service to its hubs under the Great Lakes brand; and carries cargo on its scheduled flights. As of March 20, 2015, it served 28 airports in 9 states with a fleet of 6 Embraer EMB-120 Brasilias and 28 Beechcraft 1900D regional airliners. The company was founded in 1979 and is headquartered in Cheyenne, Wyoming.

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