Era Group (ERA) and Gol Linhas Aereas Inteligentes (GOL) Financial Analysis
Era Group (NYSE: ERA) and Gol Linhas Aereas Inteligentes (NYSE:GOL) are both small-cap transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.
This table compares Era Group and Gol Linhas Aereas Inteligentes’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gol Linhas Aereas Inteligentes||-2.70%||-9.77%||-3.27%|
Risk and Volatility
Era Group has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Gol Linhas Aereas Inteligentes has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Era Group and Gol Linhas Aereas Inteligentes, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gol Linhas Aereas Inteligentes||0||2||2||0||2.50|
Gol Linhas Aereas Inteligentes has a consensus price target of $21.25, indicating a potential downside of 6.88%. Given Gol Linhas Aereas Inteligentes’ higher probable upside, analysts clearly believe Gol Linhas Aereas Inteligentes is more favorable than Era Group.
Earnings & Valuation
This table compares Era Group and Gol Linhas Aereas Inteligentes’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Era Group||$233.70 million||1.02||$37.33 million||($0.70)||-16.07|
|Gol Linhas Aereas Inteligentes||$3.12 billion||0.30||$346.84 million||($1.20)||-19.10|
Gol Linhas Aereas Inteligentes has higher revenue and earnings than Era Group. Gol Linhas Aereas Inteligentes is trading at a lower price-to-earnings ratio than Era Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
86.8% of Era Group shares are owned by institutional investors. Comparatively, 0.0% of Gol Linhas Aereas Inteligentes shares are owned by institutional investors. 7.9% of Era Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
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 Gol Linhas Aereas Inteligentes
Gol Linhas Aereas Inteligentes S.A. (GOL) is an airline company. The Company is engaged in providing mobile geolocation services to its passengers and designing a Website featuring accessibility resources to assist people with visual and motor impairments. The Company operates through two segments: Air transportation and Loyalty program. Air transportation segment operations originate from its subsidiary Gol Linhas Aereas S.A. (GLA) for the provision of air transportation services. Its operations also include cargo operations and excess baggage. Loyalty program segment operations are represented by the sale of mileage to air and non-air partner companies, which includes the management of the program, the sale of reward redemption rights and the creation and management of an individual and corporate database. The Company’s fleet has approximately 130 Boeing Boeing 737-700 and Boeing 737-800.
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