Contrasting SkyWest (SKYW) & Virgin America (VA)

SkyWest (NASDAQ: SKYW) and Virgin America (NASDAQ:VA) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for SkyWest and Virgin America, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SkyWest 0 1 2 1 3.00
Virgin America 0 0 0 0 N/A

SkyWest currently has a consensus price target of $54.00, indicating a potential upside of 9.64%. Given SkyWest’s higher probable upside, research analysts clearly believe SkyWest is more favorable than Virgin America.

Profitability

This table compares SkyWest and Virgin America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SkyWest -4.15% 11.87% 3.18%
Virgin America 11.64% 22.78% 10.96%

Earnings and Valuation

This table compares SkyWest and Virgin America’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SkyWest $3.12 billion 0.82 -$161.58 million ($2.60) -18.94
Virgin America N/A N/A N/A $6.68 8.53

Virgin America has lower revenue, but higher earnings than SkyWest. SkyWest is trading at a lower price-to-earnings ratio than Virgin America, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

90.8% of SkyWest shares are owned by institutional investors. Comparatively, 65.6% of Virgin America shares are owned by institutional investors. 3.5% of SkyWest shares are owned by company insiders. Comparatively, 31.2% of Virgin America shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

SkyWest pays an annual dividend of $0.32 per share and has a dividend yield of 0.6%. Virgin America does not pay a dividend. SkyWest pays out -12.3% of its earnings in the form of a dividend.

Summary

SkyWest beats Virgin America on 7 of the 13 factors compared between the two stocks.

About SkyWest

SkyWest, Inc. is the holding company for two scheduled passenger airline operations and an aircraft leasing company. SkyWest’s airline companies provide commercial air service in cities throughout North America with nearly 3,000 daily flights carrying more than 53 million passengers annually. SkyWest Airlines operates through partnerships with United Airlines, Delta Air Lines, American Airlines and Alaska Airlines. ExpressJet Airlines operates through partnerships with United Airlines, Delta Air Lines and American Airlines. Based in St. George, Utah, SkyWest employs nearly 17,000 employees.

About Virgin America

Virgin America Inc. is an airline that provides scheduled air travel in the United States and Mexico. The Company operates in air transportation service segment. The Company operates from Los Angeles and San Francisco with a presence at Dallas Love Field (DAL) to other destinations in North America. The Company provides service to over 20 airports in the United States and Mexico with a fleet of over 60 narrow-body aircraft. It offers three levels of service: First Class, Main Cabin Select and Main Cabin. The Company’s First Class level of service includes eight-seat cabin with an inflight teammate to provide service. Its Main Cabin Select includes approximately 40 inches of pitch for leg room. The Company’s Main Cabin includes approximately 30 inches of pitch and individual Red inflight entertainment system at every seatback. The Company maintains a guest loyalty program called the Elevate frequent flyer program.

Receive News & Ratings for SkyWest Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SkyWest and related companies with our FREE daily email newsletter.

 


Latest News

Houston Astros Add Starter to Rotation
Houston Astros Add Starter to Rotation
Sources: Mets Bringing Back Jay Bruce with Three-Year Deal
Sources: Mets Bringing Back Jay Bruce with Three-Year Deal
Justin Morneau Former Star With Twins and AL MVP Retires
Justin Morneau Former Star With Twins and AL MVP Retires
MLB Rumor: Pirates Discussing Andrew McCutchen with Mets
MLB Rumor: Pirates Discussing Andrew McCutchen with Mets
Trade Rumor: Manny Machado Could Land With Yankees
Trade Rumor: Manny Machado Could Land With Yankees
Los Angeles Dodgers Acquire Scott Alexander as Part of Three Team Deal
Los Angeles Dodgers Acquire Scott Alexander as Part of Three Team Deal


Leave a Reply

 
© 2006-2018 BBNS.