Reviewing Azul (AZUL) and JetBlue Airways (JBLU)

Azul (NYSE: AZUL) and JetBlue Airways (NASDAQ:JBLU) are both mid-cap transportation companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Institutional and Insider Ownership

4.4% of Azul shares are owned by institutional investors. Comparatively, 93.0% of JetBlue Airways shares are owned by institutional investors. 0.6% of JetBlue Airways 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.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Azul and JetBlue Airways, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Azul 0 0 5 0 3.00
JetBlue Airways 1 7 4 0 2.25

Azul presently has a consensus target price of $30.95, indicating a potential upside of 13.06%. JetBlue Airways has a consensus target price of $24.09, indicating a potential upside of 18.67%. Given JetBlue Airways’ higher probable upside, analysts plainly believe JetBlue Airways is more favorable than Azul.

Profitability

This table compares Azul and JetBlue Airways’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Azul N/A N/A N/A
JetBlue Airways 16.35% 14.20% 6.04%

Valuation and Earnings

This table compares Azul and JetBlue Airways’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Azul $1.91 billion 4.60 -$36.21 million N/A N/A
JetBlue Airways $7.02 billion 0.93 $1.15 billion $3.51 5.78

JetBlue Airways has higher revenue and earnings than Azul.

Summary

JetBlue Airways beats Azul on 8 of the 11 factors compared between the two stocks.

Azul Company Profile

Azul SA is a Brazil-based company engaged in the provision of passenger transportation services. The Company primarily acts as an airline operator under the Azul brand name. The Company provides scheduled flights between numerous cities in Brazil, including Sao Paulo, Brasilia, Rio de Janeiro, Belo Horizonte, Porto Alegre, Curitiba, Manaus, Cuiaba, Fortaleza and Salvador, among others. In addition, its air network comprises international routes to the Unites States, Europe and other Latin American countries. The Company also offers Azul Cargo Express, a scheduled cargo transport service with airport-to-airport and door-to-door delivery. It owns a number of subsidiaries, such as Azul Linhas Aereas Brasileiras SA and Tudo Azul SA.

JetBlue Airways 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.

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