Era Group (NYSE: ERA) and Avianca Holdings (NYSE:AVH) are both small-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitabiliy.

Dividends

Avianca Holdings pays an annual dividend of $0.03 per share and has a dividend yield of 0.4%. Era Group does not pay a dividend. Avianca Holdings pays out 6.1% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Era Group and Avianca Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Era Group $239.17 million 0.85 $38.50 million N/A N/A
Avianca Holdings $4.20 billion 0.21 $511.81 million $0.49 14.53

Avianca Holdings has higher revenue and earnings than Era Group.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Era Group and Avianca Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Era Group 0 0 0 0 N/A
Avianca Holdings 1 3 0 0 1.75

Avianca Holdings has a consensus price target of $9.00, suggesting a potential upside of 26.40%. Given Avianca Holdings’ higher probable upside, analysts clearly believe Avianca Holdings is more favorable than Era Group.

Risk & Volatility

Era Group has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Avianca Holdings has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Profitability

This table compares Era Group and Avianca Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Era Group -4.09% -2.18% -1.06%
Avianca Holdings 1.46% 11.82% 1.59%

Institutional and Insider Ownership

89.8% of Era Group shares are held by institutional investors. Comparatively, 3.1% of Avianca Holdings shares are held by institutional investors. 7.5% of Era Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Avianca Holdings beats Era Group on 7 of the 11 factors compared between the two stocks.

About Era Group

Era Group Inc. is engaged in operating helicopters. The Company’s helicopters transport personnel to, from and between offshore oil and gas production platforms, drilling rigs and other installations. The Company also dry-leases helicopters to third-party helicopter operators and foreign affiliates. The primary users of the Company’s helicopter services are international, integrated and independent oil and gas exploration, development and production companies. In addition to serving the oil and gas industry, it provides air medical services; utility services, including support of firefighting, mining, power line and pipeline survey activities, and Alaska flightseeing tours, among other activities. It owns and operates a range of classes of helicopters, such as Heavy helicopters, Medium helicopters and Light helicopters. Heavy helicopters have twin engines and passenger capacity ranging from 16 to 19. Medium helicopters have twin engines and passenger capacity ranging from 11 to 12.

About Avianca Holdings

Avianca Holdings SA is a Panama-based company engaged, through its subsidiaries, in the provision of air transportation services for passengers and commercial purposes. The Company was originally established as a strategic alliance between Aerovias del Continente Americano SA (AVIANCA) and Grupo TACA Holdings Limited (GTH), and it mainly operates in North, Central and South America, the Caribbean and Europe. In addition, through codeshare agreements, the Company is active in the operation of other international passenger air routes. As of December 31, 2011, the Company owned such subsidiaries as Latin Airways Corporation and LifeMiles Corporation, among others. On December 28, 2012, the merger of subsidiaries Latin Airways Corporation, as absorbing company, with Synergy Ocean Air Colombia SAS and Soac 2 SAS was formalized. On June 18, 2013, the Company received the first out of 15 ATR 72-600, a turbo-propelled aircraft from ATR, a company engaged in regional aircraft.

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