Critical Comparison: SkyWest (SKYW) & Gol Linhas Aereas Inteligentes (GOL)

Gol Linhas Aereas Inteligentes (NYSE: GOL) and SkyWest (NASDAQ:SKYW) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Volatility and Risk

Gol Linhas Aereas Inteligentes has a beta of 1.91, meaning that its share price is 91% more volatile than the S&P 500. Comparatively, SkyWest has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500.

Profitability

This table compares Gol Linhas Aereas Inteligentes and SkyWest’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gol Linhas Aereas Inteligentes -0.05% N/A -0.06%
SkyWest -4.15% 11.87% 3.18%

Analyst Ratings

This is a summary of current recommendations for Gol Linhas Aereas Inteligentes and SkyWest, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gol Linhas Aereas Inteligentes 0 1 3 0 2.75
SkyWest 0 1 2 1 3.00

Gol Linhas Aereas Inteligentes currently has a consensus target price of $24.50, suggesting a potential upside of 153.75%. SkyWest has a consensus target price of $51.33, suggesting a potential downside of 0.23%. Given Gol Linhas Aereas Inteligentes’ higher probable upside, analysts plainly believe Gol Linhas Aereas Inteligentes is more favorable than SkyWest.

Insider & Institutional Ownership

0.3% of Gol Linhas Aereas Inteligentes shares are held by institutional investors. Comparatively, 90.8% of SkyWest shares are held by institutional investors. 3.5% of SkyWest shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Gol Linhas Aereas Inteligentes and SkyWest’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 $2.85 billion 0.59 $243.58 million $0.05 193.10
SkyWest $3.12 billion 0.85 -$161.58 million ($2.61) -19.71

Gol Linhas Aereas Inteligentes has higher earnings, but lower revenue than SkyWest. SkyWest 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.

Dividends

SkyWest pays an annual dividend of $0.32 per share and has a dividend yield of 0.6%. Gol Linhas Aereas Inteligentes does not pay a dividend. SkyWest pays out -12.3% of its earnings in the form of a dividend.

Summary

SkyWest beats Gol Linhas Aereas Inteligentes on 10 of the 17 factors compared between the two stocks.

Gol Linhas Aereas Inteligentes Company Profile

Gol Linhas Aereas Inteligentes SA is a Brazil-based airline company. The Company focuses on carrying passengers to over 60 destinations, approximately 50 in Brazil and 10 in South America and the Caribbean. The Company’s fleet includes approximately 120 Boeing 737 aircrafts. The Company operates through two segments: Air transportation and Loyalty program. The Air transportation segment operations originate from its subsidiary Gol Linhas Aereas SA (GLA) for the provision of air transportation services. Its operations also include cargo operations and excess baggage. The Loyalty program segment operations are represented by SMILES coalition loyalty program, which enables clients to accumulate miles and redeem tickets for more than 700 locations worldwide.

SkyWest Company Profile

SkyWest, Inc. is the holding company for two scheduled passenger airline operations and an aircraft leasing company. SkyWest’s airline companies provide commercial air service in cities throughout North America with nearly 3,000 daily flights carrying more than 53 million passengers annually. SkyWest Airlines operates through partnerships with United Airlines, Delta Air Lines, American Airlines and Alaska Airlines. ExpressJet Airlines operates through partnerships with United Airlines, Delta Air Lines and American Airlines. Based in St. George, Utah, SkyWest employs nearly 17,000 employees.

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