SkyWest (NASDAQ: SKYW) and Hawaiian (NASDAQ:HA) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.
Earnings and Valuation
This table compares SkyWest and Hawaiian’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SkyWest||$3.20 billion||0.94||$428.90 million||$8.07||7.24|
|Hawaiian||$2.70 billion||0.70||$364.04 million||$4.87||7.51|
This is a breakdown of current ratings and price targets for SkyWest and Hawaiian, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SkyWest currently has a consensus target price of $59.25, indicating a potential upside of 1.37%. Hawaiian has a consensus target price of $48.42, indicating a potential upside of 32.47%. Given Hawaiian’s higher possible upside, analysts clearly believe Hawaiian is more favorable than SkyWest.
This table compares SkyWest and Hawaiian’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
SkyWest has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, Hawaiian has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500.
Insider & Institutional Ownership
90.3% of SkyWest shares are owned by institutional investors. Comparatively, 89.7% of Hawaiian shares are owned by institutional investors. 3.5% of SkyWest shares are owned by company insiders. Comparatively, 2.3% of Hawaiian shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
SkyWest pays an annual dividend of $0.32 per share and has a dividend yield of 0.5%. Hawaiian pays an annual dividend of $0.48 per share and has a dividend yield of 1.3%. SkyWest pays out 4.0% of its earnings in the form of a dividend. Hawaiian pays out 9.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
SkyWest beats Hawaiian on 10 of the 17 factors compared between the two stocks.
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.
Hawaiian Company Profile
Hawaiian Holdings, Inc. is a holding company. The Company is engaged in the scheduled air transportation of passengers and cargo amongst the Hawaiian Islands (the Neighbor Island routes), between the Hawaiian Islands and certain cities in the United States (the North America routes), and between the Hawaiian Islands and the South Pacific, Australia, New Zealand and Asia (the International routes), collectively referred to as its Scheduled Operations. It offers non-stop service to Hawai’i from United States gateway cities. As of December 31, 2016, it also provided approximately 160 daily flights between the Hawaiian Islands. The Company operates various charter flights. As of December 31, 2016, the Company’s fleet consisted of 20 Boeing 717-200 aircraft for the Neighbor Island routes, eight Boeing 767-300 aircraft, and 23 Airbus A330-200 aircraft for the North America, International, and charter routes.
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