JetBlue Airways (JBLU) and Deutsche Lufthansa (DLAKY) Critical Contrast

JetBlue Airways (NASDAQ:JBLU) and Deutsche Lufthansa (OTCMKTS:DLAKY) are both transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Dividends

Deutsche Lufthansa pays an annual dividend of $0.67 per share and has a dividend yield of 3.0%. JetBlue Airways does not pay a dividend.

Profitability

This table compares JetBlue Airways and Deutsche Lufthansa’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JetBlue Airways 11.30% 10.80% 4.98%
Deutsche Lufthansa 6.59% 25.87% 6.21%

Risk and Volatility

JetBlue Airways has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Deutsche Lufthansa has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for JetBlue Airways and Deutsche Lufthansa, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JetBlue Airways 1 8 3 0 2.17
Deutsche Lufthansa 2 1 3 0 2.17

JetBlue Airways currently has a consensus target price of $21.67, indicating a potential upside of 32.44%. Given JetBlue Airways’ higher possible upside, equities research analysts clearly believe JetBlue Airways is more favorable than Deutsche Lufthansa.

Institutional and Insider Ownership

87.2% of JetBlue Airways shares are held by institutional investors. Comparatively, 0.2% of Deutsche Lufthansa shares are held by institutional investors. 0.6% of JetBlue Airways shares are held by 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.

Earnings and Valuation

This table compares JetBlue Airways and Deutsche Lufthansa’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
JetBlue Airways $7.02 billion 0.73 $1.15 billion $1.71 9.57
Deutsche Lufthansa $40.19 billion 0.26 $2.67 billion N/A N/A

Deutsche Lufthansa has higher revenue and earnings than JetBlue Airways.

About JetBlue Airways

JetBlue Airways Corporation, a passenger carrier company, provides air transportation services. As of December 31, 2017, the company operated a fleet of 53 Airbus A321 aircraft, 130 Airbus A320 aircraft, and 60 Embraer E190 aircraft. It also served 101 destinations in 30 states in the United States, the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, and 21 countries in the Caribbean and Latin America. JetBlue Airways Corporation was founded in 1998 and is based in Long Island City, New York.

About Deutsche Lufthansa

Deutsche Lufthansa AG operates as an aviation company in Germany and internationally. It operates through Network Airlines, Point-to-Point Airlines, Logistics, MRO, Catering segments. The Network Airlines segment offers passenger services through a route network of 263 destinations in 86 countries. The Point-to-Point Airlines segment provides passenger services through a route network of 192 destinations in 62 countries. The Logistics segment offers a range of cargo transport services for various cargos, including live animals, valuable cargo, mail, dangerous goods, and temperature-sensitive cargo. This segment serves approximately 300 destinations in approximately 100 countries. The MRO segment provides maintenance, repair, and overhaul services for civilian commercial aircraft. It serves airlines and aircraft leasing companies, operators of VIP jets, and public-sector clients. The Catering segment offers catering, in-flight sales and in-flight entertainment, in-flight service equipment, and the associated logistics, as well as consulting services and operating airport lounges. The company also provides consulting and IT services for the aviation industry; training courses in simulator training, emergency and service drill, and e-learning; business travel management solutions in the area of payment and analysis of corporate travel; and aviation and transport insurance products, as well as insurance brokerage, reinsurance, and risk management services. As of December 31, 2017, it had a fleet of 728 aircraft. Deutsche Lufthansa AG is headquartered in Cologne, Germany.

Receive News & Ratings for JetBlue Airways Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for JetBlue Airways and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply