Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE: VLRS) and Allegiant Travel (NASDAQ:ALGT) are both transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Institutional & Insider Ownership

85.7% of Allegiant Travel shares are owned by institutional investors. 22.0% of Allegiant Travel shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Controladora Vuela Compania de Aviacion, S.A.B. de C.V. and Allegiant Travel, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Controladora Vuela Compania de Aviacion, S.A.B. de C.V. 0 4 3 0 2.43
Allegiant Travel 1 9 3 0 2.15

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. currently has a consensus price target of $16.10, suggesting a potential upside of 20.78%. Allegiant Travel has a consensus price target of $158.55, suggesting a potential upside of 28.48%. Given Allegiant Travel’s higher possible upside, analysts plainly believe Allegiant Travel is more favorable than Controladora Vuela Compania de Aviacion, S.A.B. de C.V..

Valuation and Earnings

This table compares Controladora Vuela Compania de Aviacion, S.A.B. de C.V. and Allegiant Travel’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Controladora Vuela Compania de Aviacion, S.A.B. de C.V. $1.39 billion 0.97 $64.79 million ($0.03) -444.33
Allegiant Travel $1.44 billion 1.39 $426.21 million $10.67 11.57

Allegiant Travel has higher revenue and earnings than Controladora Vuela Compania de Aviacion, S.A.B. de C.V.. Controladora Vuela Compania de Aviacion, S.A.B. de C.V. is trading at a lower price-to-earnings ratio than Allegiant Travel, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. has a beta of -0.01, suggesting that its stock price is 101% less volatile than the S&P 500. Comparatively, Allegiant Travel has a beta of -0.05, suggesting that its stock price is 105% less volatile than the S&P 500.

Profitability

This table compares Controladora Vuela Compania de Aviacion, S.A.B. de C.V. and Allegiant Travel’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Controladora Vuela Compania de Aviacion, S.A.B. de C.V. -0.15% -0.39% -0.18%
Allegiant Travel 12.23% 37.66% 10.41%

Dividends

Allegiant Travel pays an annual dividend of $2.80 per share and has a dividend yield of 2.3%. Controladora Vuela Compania de Aviacion, S.A.B. de C.V. does not pay a dividend. Allegiant Travel pays out 26.2% of its earnings in the form of a dividend.

Summary

Allegiant Travel beats Controladora Vuela Compania de Aviacion, S.A.B. de C.V. on 11 of the 15 factors compared between the two stocks.

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. Company Profile

Controladora Vuela Compania de Aviacion SAB de CV (Volaris Aviation Holding Company) is a Mexico-based company principally engaged in the airline passenger transportation industry. The Company is a law-cost carrier airline. Controladora Vuela Compania de Aviacion SAB de CV offers direct, point-to-point flights. The Company serves through secondary, lower cost airports and provides a single class of service. The Company utilizes such aircraft as the Airbus A319 and A320 families, among others. The Company has such subsidiaries as Comercializadora Volaris SA de CV, Servicios Corporativos Volaris SA de CV, Concesionaria Vuela Compania de Aviacion SAPI de CV, Deutsche Bank Mexico SA Trust 1484, among others.

Allegiant Travel Company Profile

Allegiant Travel Company is a leisure travel company. The Company is focused on providing travel services and products to residents of under-served cities in the United States. It also provides air transportation under fixed fee flying arrangements. The Company’s products and services include scheduled service air transportation, air-related ancillary products and services, third-party ancillary products and services and fixed fee contract air transportation. Its scheduled service air transportation includes scheduled air transportation on limited-frequency non-stop flights between under-served cities and leisure destinations. As of February 1, 2017, its operating fleet consisted of 47 MD-80 aircraft, 34 Airbus A320 series aircraft, and four Boeing 757-200 aircraft, and it was selling travel on 377 routes to 119 cities. The Company’s air-related ancillary products and services include providing unbundled air-related services and products in conjunction with air transportation.

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