JetBlue Airways Corporation (NASDAQ: JBLU) and Alaska Air Group (NYSE:ALK) are both mid-cap transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.
Valuation & Earnings
This table compares JetBlue Airways Corporation and Alaska Air Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|JetBlue Airways Corporation||$6.82 billion||0.98||$1.54 billion||$1.97||10.27|
|Alaska Air Group||$6.94 billion||1.44||$1.84 billion||$6.16||13.10|
Alaska Air Group has higher revenue and earnings than JetBlue Airways Corporation. JetBlue Airways Corporation is trading at a lower price-to-earnings ratio than Alaska Air Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
84.5% of JetBlue Airways Corporation shares are owned by institutional investors. Comparatively, 87.8% of Alaska Air Group shares are owned by institutional investors. 0.6% of JetBlue Airways Corporation shares are owned by company insiders. Comparatively, 0.6% of Alaska Air Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares JetBlue Airways Corporation and Alaska Air Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|JetBlue Airways Corporation||9.78%||16.75%||6.99%|
|Alaska Air Group||11.02%||30.04%||9.14%|
This is a summary of recent ratings for JetBlue Airways Corporation and Alaska Air Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|JetBlue Airways Corporation||1||8||5||0||2.29|
|Alaska Air Group||0||2||8||0||2.80|
JetBlue Airways Corporation currently has a consensus target price of $25.09, suggesting a potential upside of 24.03%. Alaska Air Group has a consensus target price of $101.56, suggesting a potential upside of 25.87%. Given Alaska Air Group’s stronger consensus rating and higher possible upside, analysts plainly believe Alaska Air Group is more favorable than JetBlue Airways Corporation.
Risk and Volatility
JetBlue Airways Corporation has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Alaska Air Group has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.
Alaska Air Group pays an annual dividend of $1.20 per share and has a dividend yield of 1.5%. JetBlue Airways Corporation does not pay a dividend. Alaska Air Group pays out 19.5% of its earnings in the form of a dividend. Alaska Air Group has raised its dividend for 3 consecutive years.
Alaska Air Group beats JetBlue Airways Corporation on 15 of the 17 factors compared between the two stocks.
JetBlue Airways Corporation Company Profile
JetBlue Airways Corporation is a passenger carrier company. The Company provides air transportation services across the United States, the Caribbean and Latin America. Its segments include Domestic, and Caribbean & Latin America. It operates various kinds of aircrafts, including Airbus A321, Airbus A320 and Embraer E190. It also provides premium transcontinental product called Mint. As of December 31, 2016, Mint included 16 fully lie-flat seats, four of which were in suites with a privacy door. The Company also provides Fly-Fi in-flight Internet service across its Airbus fleet. It provides its customers a choice to purchase tickets from three branded fares, which include Blue, Blue Plus and Blue Flex. Each of these fare include different offerings, such as free checked bags, reduced change fees and additional TrueBlue points. As of December 31, 2016, its Airbus A321 aircraft in a single cabin layout had 200 seats and those with Mint premium service had a seating capacity of 159 seats.
Alaska Air Group Company Profile
Alaska Air Group, Inc. is the holding company of Alaska Airlines (Alaska), Virgin America Inc., Horizon Air (Horizon) and other business units. The Company operates through three segments: Mainline, Regional and Horizon. Its Mainline segment includes Alaska’s and Virgin America’s scheduled air transportation for passengers and cargo throughout the United States, and in parts of Canada, Mexico, Costa Rica and Cuba. Its Regional segment includes Horizon’s and other third-party carriers’ scheduled air transportation for passengers across a shorter distance network within the United States under capacity purchased arrangements (CPAs). Its Horizon segment includes the capacity sold to Alaska under CPA. Alaska and Virgin America operate fleets of narrowbody passenger jets. As of December 31, 2016, it maintained two frequent flyer plans: the Alaska Airlines Mileage Plan and the Virgin America Elevate.
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