Financial Review: Japan Airlines (OTCMKTS:JAPSY) versus Controladora Vuela Compania de Aviacion (NYSE:VLRS)

Japan Airlines (OTCMKTS:JAPSYGet Free Report) and Controladora Vuela Compania de Aviacion (NYSE:VLRSGet Free Report) are both transportation companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Insider & Institutional Ownership

53.3% of Controladora Vuela Compania de Aviacion shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Japan Airlines and Controladora Vuela Compania de Aviacion”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Japan Airlines $13.37 billion 0.57 $914.10 million $1.03 8.59
Controladora Vuela Compania de Aviacion $3.04 billion 0.30 -$103.87 million ($1.07) -7.29

Japan Airlines has higher revenue and earnings than Controladora Vuela Compania de Aviacion. Controladora Vuela Compania de Aviacion is trading at a lower price-to-earnings ratio than Japan Airlines, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Japan Airlines and Controladora Vuela Compania de Aviacion, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Japan Airlines 0 1 0 1 3.00
Controladora Vuela Compania de Aviacion 2 5 5 0 2.25

Controladora Vuela Compania de Aviacion has a consensus price target of $8.87, indicating a potential upside of 13.79%. Given Controladora Vuela Compania de Aviacion’s higher probable upside, analysts clearly believe Controladora Vuela Compania de Aviacion is more favorable than Japan Airlines.

Risk & Volatility

Japan Airlines has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, Controladora Vuela Compania de Aviacion has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500.

Profitability

This table compares Japan Airlines and Controladora Vuela Compania de Aviacion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Japan Airlines 6.84% 10.96% 4.48%
Controladora Vuela Compania de Aviacion -3.96% -50.26% -2.19%

Summary

Japan Airlines beats Controladora Vuela Compania de Aviacion on 10 of the 14 factors compared between the two stocks.

About Japan Airlines

(Get Free Report)

Japan Airlines Co., Ltd., together with its subsidiaries, provides scheduled and non-scheduled air transport services in Japan, Asia, Oceania, North America, and Europe. The company operates through Air Transportation and Other segments. It offers passenger, ground handling, cargo and mail handling, and maintenance services. The company is also involved in the aerial work and other related business; airport peripheral business; and sale of travel package tours. As of March 31, 2023, it operated a fleet of 224 aircraft. The company was formerly known as Japan Airlines International Co., Ltd. and changed its name to Japan Airlines Co., Ltd. in April 2011. The company was founded in 1951 and is headquartered in Tokyo, Japan.

About Controladora Vuela Compania de Aviacion

(Get Free Report)

Controladora Vuela Compañía de Aviación, S.A.B. de C.V., through its subsidiary, Concesionaria Vuela Compañía de Aviación, S.A.P.I. de C.V., provides air transportation services for passengers, cargo, and mail in Mexico and internationally. The company operates approximately 590 daily flights on routes connecting 43 cities in Mexico, 22 cities in the United States, 4 cities in Central America, and 2 cities in South America. As of December 31, 2022, it leased 116 aircrafts and 23 spare engines. The company also offers merchandising, travel agency, and loyalty program, as well as specialized and aeronautical technical services. Controladora Vuela Compañía de Aviación, S.A.B. de C.V. was incorporated in 2005 and is headquartered in Mexico City, Mexico.

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