Era Group (NYSE: ERA) and Gol Linhas Aereas Inteligentes (NYSE:GOL) are both transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.
This is a breakdown of current ratings and target prices for Era Group and Gol Linhas Aereas Inteligentes, 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|
Gol Linhas Aereas Inteligentes has a consensus target price of $21.25, suggesting a potential downside of 5.93%. Given Gol Linhas Aereas Inteligentes’ higher possible upside, analysts plainly believe Gol Linhas Aereas Inteligentes is more favorable than Era Group.
Valuation and Earnings
This table compares Era Group and Gol Linhas Aereas Inteligentes’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Era Group||$233.70 million||0.91||$37.33 million||($0.70)||-14.30|
|Gol Linhas Aereas Inteligentes||$3.12 billion||0.50||$346.84 million||($1.20)||-18.90|
Gol Linhas Aereas Inteligentes has higher revenue and earnings than Era Group. Gol Linhas Aereas Inteligentes is trading at a lower price-to-earnings ratio than Era Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
86.8% of Era Group shares are owned by institutional investors. Comparatively, 0.0% of Gol Linhas Aereas Inteligentes shares are owned by institutional investors. 7.9% of Era Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Era Group and Gol Linhas Aereas Inteligentes’ 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%|
Volatility and Risk
Era Group has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Gol Linhas Aereas Inteligentes has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500.
Era Group Company Profile
Era Group Inc. is engaged in operating helicopters. The Company’s helicopters transport personnel to, from and between offshore oil and gas production platforms, drilling rigs and other installations. The Company also dry-leases helicopters to third-party helicopter operators and foreign affiliates. The primary users of the Company’s helicopter services are international, integrated and independent oil and gas exploration, development and production companies. In addition to serving the oil and gas industry, it provides air medical services; utility services, including support of firefighting, mining, power line and pipeline survey activities, and Alaska flightseeing tours, among other activities. It owns and operates a range of classes of helicopters, such as Heavy helicopters, Medium helicopters and Light helicopters. Heavy helicopters have twin engines and passenger capacity ranging from 16 to 19. Medium helicopters have twin engines and passenger capacity ranging from 11 to 12.
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.
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