Gol Linhas Aereas Inteligentes (NYSE: GOL) and Ryanair Holdings PLC (NASDAQ:RYAAY) are both large-cap transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.
Institutional and Insider Ownership
0.0% of Gol Linhas Aereas Inteligentes shares are owned by institutional investors. Comparatively, 40.4% of Ryanair Holdings PLC shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Gol Linhas Aereas Inteligentes and Ryanair Holdings PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gol Linhas Aereas Inteligentes||-2.70%||-9.77%||-3.27%|
|Ryanair Holdings PLC||21.44%||34.02%||13.43%|
Valuation and Earnings
This table compares Gol Linhas Aereas Inteligentes and Ryanair Holdings PLC’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Gol Linhas Aereas Inteligentes||$3.12 billion||0.50||$346.84 million||($1.20)||-18.90|
|Ryanair Holdings PLC||N/A||N/A||N/A||$6.48||16.42|
Gol Linhas Aereas Inteligentes has higher revenue and earnings than Ryanair Holdings PLC. Gol Linhas Aereas Inteligentes is trading at a lower price-to-earnings ratio than Ryanair Holdings PLC, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Gol Linhas Aereas Inteligentes has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500. Comparatively, Ryanair Holdings PLC has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Gol Linhas Aereas Inteligentes and Ryanair Holdings PLC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gol Linhas Aereas Inteligentes||0||2||2||0||2.50|
|Ryanair Holdings PLC||4||1||7||0||2.25|
Gol Linhas Aereas Inteligentes presently has a consensus target price of $21.25, indicating a potential downside of 5.93%. Ryanair Holdings PLC has a consensus target price of $96.00, indicating a potential downside of 9.75%. Given Gol Linhas Aereas Inteligentes’ stronger consensus rating and higher probable upside, analysts clearly believe Gol Linhas Aereas Inteligentes is more favorable than Ryanair Holdings PLC.
Ryanair Holdings PLC beats Gol Linhas Aereas Inteligentes on 6 of the 10 factors compared between the two stocks.
Gol Linhas Aereas Inteligentes Company Profile
Gol Linhas Aereas Inteligentes SA is a Brazil-based airline company. The Company focuses on carrying passengers to over 60 destinations, approximately 50 in Brazil and 10 in South America and the Caribbean. The Company’s fleet includes approximately 120 Boeing 737 aircrafts. The Company operates through two segments: Air transportation and Loyalty program. The Air transportation segment operations originate from its subsidiary Gol Linhas Aereas SA (GLA) for the provision of air transportation services. Its operations also include cargo operations and excess baggage. The Loyalty program segment operations are represented by SMILES coalition loyalty program, which enables clients to accumulate miles and redeem tickets for more than 700 locations worldwide.
Ryanair Holdings PLC Company Profile
Ryanair Holdings plc (Ryanair Holdings) is a holding company for Ryanair Limited (Ryanair). Ryanair operates an ultra-low fare, scheduled-passenger airline serving short-haul, point-to-point routes between Ireland, the United Kingdom, Continental Europe, Morocco and Israel. Ryanair provides various ancillary services and engages in other activities connected with its core air passenger service, including non-flight scheduled services, Internet-related services, and the in-flight sale of beverages, food and merchandise. Ryanair markets accommodation services and travel insurance through its Website. It provides hotel and accommodation services. Ryanair provides its own aircraft and passenger handling and ticketing services at Dublin Airport. As of June 30, 2016, Ryanair had a principal fleet of over 350 Boeing 737-800 aircraft and offered over 2,000 scheduled short-haul flights per day serving approximately 200 airports throughout Europe.
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