Gol Linhas Aereas Inteligentes (NYSE: GOL) and American Airlines Group (NASDAQ:AAL) are both transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Institutional and Insider Ownership
0.9% of Gol Linhas Aereas Inteligentes shares are owned by institutional investors. Comparatively, 80.7% of American Airlines Group shares are owned by institutional investors. 0.7% of American Airlines Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Gol Linhas Aereas Inteligentes and American Airlines Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gol Linhas Aereas Inteligentes||0.08%||-4.28%||1.46%|
|American Airlines Group||4.35%||92.63%||4.65%|
American Airlines Group pays an annual dividend of $0.40 per share and has a dividend yield of 1.1%. Gol Linhas Aereas Inteligentes does not pay a dividend. American Airlines Group pays out 8.2% of its earnings in the form of a dividend.
Risk and Volatility
Gol Linhas Aereas Inteligentes has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, American Airlines Group has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.
Earnings and Valuation
This table compares Gol Linhas Aereas Inteligentes and American Airlines Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gol Linhas Aereas Inteligentes||$3.31 billion||0.29||$6.00 million||$0.27||20.22|
|American Airlines Group||$42.21 billion||0.40||$1.92 billion||$4.88||7.38|
American Airlines Group has higher revenue and earnings than Gol Linhas Aereas Inteligentes. American Airlines Group 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.
This is a breakdown of current ratings and recommmendations for Gol Linhas Aereas Inteligentes and American Airlines Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gol Linhas Aereas Inteligentes||0||1||2||0||2.67|
|American Airlines Group||0||3||11||0||2.79|
Gol Linhas Aereas Inteligentes currently has a consensus price target of $9.50, suggesting a potential upside of 73.99%. American Airlines Group has a consensus price target of $59.79, suggesting a potential upside of 65.66%. Given Gol Linhas Aereas Inteligentes’ higher probable upside, equities research analysts clearly believe Gol Linhas Aereas Inteligentes is more favorable than American Airlines Group.
American Airlines Group beats Gol Linhas Aereas Inteligentes on 12 of the 16 factors compared between the two stocks.
About Gol Linhas Aereas Inteligentes
GOL Linhas Aéreas Inteligentes S.A. provides scheduled air transportation services for passengers cargoes, and mailbags in Brazil and Latin America. The company operates through Flight Transportation and Smiles Loyalty Program segments. It also offers logistics services. In addition, the company offers Smiles loyalty programs with approximately 13.7 million members, allowing clients to accumulate and redeem miles. As of December 31, 2017, it operated a single fleet of 119 Boeing 737 aircraft and approximately 700 daily flights to 64 destinations in Brazil, South America, and the Caribbean. GOL Linhas Aéreas Inteligentes S.A. was founded in 2001 and is based in Sao Paulo, Brazil.
About American Airlines Group
American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. It provides scheduled air transportation services for passengers and cargo. As of December 31, 2017, the company operated a mainline fleet of 948 aircraft. It serves 350 destinations in approximately 50 countries, principally from its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, and Phoenix, as well as in Washington, D.C. The company was formerly known as AMR Corporation and changed its name to American Airlines Group Inc. in December 2013. American Airlines Group Inc. was founded in 1934 and is headquartered in Fort Worth, Texas.
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