Delta Air Lines (NYSE:DAL) and Controladora Vuela Co Avcn SA CV (NYSE:VLRS) are both transportation companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.
Insider and Institutional Ownership
86.8% of Delta Air Lines shares are held by institutional investors. 0.5% of Delta Air Lines shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for Delta Air Lines and Controladora Vuela Co Avcn SA CV, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Delta Air Lines||0||6||10||0||2.63|
|Controladora Vuela Co Avcn SA CV||0||1||8||0||2.89|
Delta Air Lines currently has a consensus target price of $67.29, suggesting a potential upside of 14.25%. Controladora Vuela Co Avcn SA CV has a consensus target price of $13.20, suggesting a potential downside of 1.05%. Given Delta Air Lines’ higher possible upside, research analysts plainly believe Delta Air Lines is more favorable than Controladora Vuela Co Avcn SA CV.
Earnings and Valuation
This table compares Delta Air Lines and Controladora Vuela Co Avcn SA CV’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Delta Air Lines||$47.01 billion||0.81||$4.77 billion||$7.31||8.06|
|Controladora Vuela Co Avcn SA CV||$1.39 billion||0.97||-$34.67 million||($0.35)||-38.11|
Delta Air Lines has higher revenue and earnings than Controladora Vuela Co Avcn SA CV. Controladora Vuela Co Avcn SA CV is trading at a lower price-to-earnings ratio than Delta Air Lines, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Delta Air Lines has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Controladora Vuela Co Avcn SA CV has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.
This table compares Delta Air Lines and Controladora Vuela Co Avcn SA CV’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Delta Air Lines||10.14%||33.28%||7.57%|
|Controladora Vuela Co Avcn SA CV||5.61%||35.11%||3.61%|
Delta Air Lines beats Controladora Vuela Co Avcn SA CV on 9 of the 14 factors compared between the two stocks.
About Delta Air Lines
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its route network is centered on a system of hubs and markets at airports in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, São Paulo, Seattle, Seoul-Incheon, and Tokyo-Narita. The company sells its tickets through various distribution channels, including delta.com and mobile applications/Web, telephone reservations, online travel agencies, traditional brick and mortar, and other agencies. It also provides aircraft maintenance, repair, and overhaul services; and vacation packages to third-party consumers, as well as aircraft charters, and management and programs. The company operates through a fleet of approximately 800 aircraft. Delta Air Lines, Inc. was founded in 1924 and is headquartered in Atlanta, Georgia.
About Controladora Vuela Co Avcn SA CV
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. provides air transportation services for passengers, cargo, and mail in Mexico and internationally. As of December 31, 2018, the company operated a fleet of 77 Airbus narrow-body aircraft, which include 8 Airbus A319s, 55 A320s, and 14 A321s. It operates approximately 394 daily flight segments on routes that connect 40 cities in Mexico and 26 cities in the United States and Central America. The company also offers merchandising, recruitment and payroll, and travel agency services. Controladora Vuela Compañía de Aviación, S.A.B. de C.V. was founded in 2005 and is headquartered in Mexico City, Mexico.
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