Analyzing SkyWest (SKYW) and Its Peers

SkyWest (NASDAQ:SKYW) is one of 78 public companies in the “Passenger Airlines” industry, but how does it weigh in compared to its rivals? We will compare SkyWest to similar companies based on the strength of its institutional ownership, profitability, risk, valuation, analyst recommendations, dividends and earnings.

Volatility and Risk

SkyWest has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, SkyWest’s rivals have a beta of 18.44, suggesting that their average stock price is 1,744% more volatile than the S&P 500.

Insider & Institutional Ownership

81.3% of SkyWest shares are held by institutional investors. Comparatively, 42.0% of shares of all “Passenger Airlines” companies are held by institutional investors. 1.5% of SkyWest shares are held by insiders. Comparatively, 10.5% of shares of all “Passenger Airlines” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares SkyWest and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
SkyWest	$4.06 billion	$428.33 million	7.99
SkyWest Competitors	$14.59 billion	$637.69 million	19.78

SkyWest’s rivals have higher revenue and earnings than SkyWest. SkyWest is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares SkyWest and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SkyWest	9.70%	14.52%	5.41%
SkyWest Competitors	-8.88%	4.73%	1.10%

Analyst Recommendations

This is a summary of current ratings for SkyWest and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SkyWest	1	3	2	0	2.17
SkyWest Competitors	1527	4066	6689	356	2.46

SkyWest currently has a consensus price target of $111.40, suggesting a potential upside of 35.03%. As a group, “Passenger Airlines” companies have a potential upside of 5.60%. Given SkyWest’s higher possible upside, analysts plainly believe SkyWest is more favorable than its rivals.

Summary

SkyWest rivals beat SkyWest on 8 of the 13 factors compared.

About SkyWest

SkyWest, Inc. is a regional airline holding company that provides passenger air service through its subsidiaries, primarily SkyWest Airlines. The airline operates flights under agreements with major carriers, including United Airlines, Delta Air Lines, American Airlines and Alaska Airlines, using their regional brands. SkyWest’s services connect communities across the United States and parts of Canada and Mexico to larger airline hubs. Its fleet includes regional jets, and its operations are designed to support partner airlines’ domestic and international route networks.