Comparing Azul (AZUL) & Era Group (ERA)

Azul (NYSE: AZUL) and Era Group (NYSE:ERA) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Insider & Institutional Ownership

4.6% of Azul shares are owned by institutional investors. Comparatively, 83.4% of Era Group 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, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Azul and Era Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Azul 0 0 5 0 3.00
Era Group 0 0 0 0 N/A

Azul presently has a consensus price target of $30.95, suggesting a potential upside of 12.98%. Given Azul’s higher possible upside, analysts clearly believe Azul is more favorable than Era Group.

Profitability

This table compares Azul and Era Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Azul N/A N/A N/A
Era Group -41.46% -4.53% -2.20%

Earnings and Valuation

This table compares Azul and Era Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Azul $1.91 billion 4.60 -$36.21 million $0.15 182.60
Era Group $247.23 million 0.83 -$7.97 million ($4.59) -2.10

Era Group has lower revenue, but higher earnings than Azul. Era Group is trading at a lower price-to-earnings ratio than Azul, indicating that it is currently the more affordable of the two stocks.

Summary

Azul beats Era Group on 9 of the 12 factors compared between the two stocks.

About Azul

Azul SA is a Brazil-based company engaged in the provision of passenger transportation services. The Company primarily acts as an airline operator under the Azul brand name. The Company provides scheduled flights between numerous cities in Brazil, including Sao Paulo, Brasilia, Rio de Janeiro, Belo Horizonte, Porto Alegre, Curitiba, Manaus, Cuiaba, Fortaleza and Salvador, among others. In addition, its air network comprises international routes to the Unites States, Europe and other Latin American countries. The Company also offers Azul Cargo Express, a scheduled cargo transport service with airport-to-airport and door-to-door delivery. It owns a number of subsidiaries, such as Azul Linhas Aereas Brasileiras SA and Tudo Azul SA.

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.

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