Gol Linhas Aereas Inteligentes (NYSE: GOL) and Allegiant Travel (NASDAQ:ALGT) are both transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
Risk & Volatility
Gol Linhas Aereas Inteligentes has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500. Comparatively, Allegiant Travel has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500.
Allegiant Travel pays an annual dividend of $2.80 per share and has a dividend yield of 1.9%. Gol Linhas Aereas Inteligentes does not pay a dividend. Allegiant Travel pays out 29.3% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Gol Linhas Aereas Inteligentes and Allegiant Travel’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gol Linhas Aereas Inteligentes||$3.31 billion||0.30||$6.00 million||$0.27||21.56|
|Allegiant Travel||$1.50 billion||1.55||$194.90 million||$9.55||15.09|
Allegiant Travel has lower revenue, but higher earnings than Gol Linhas Aereas Inteligentes. Allegiant Travel is trading at a lower price-to-earnings ratio than Gol Linhas Aereas Inteligentes, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Gol Linhas Aereas Inteligentes and Allegiant Travel, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gol Linhas Aereas Inteligentes||0||1||2||0||2.67|
Gol Linhas Aereas Inteligentes currently has a consensus price target of $13.00, suggesting a potential upside of 123.37%. Allegiant Travel has a consensus price target of $164.36, suggesting a potential upside of 14.02%. Given Gol Linhas Aereas Inteligentes’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Gol Linhas Aereas Inteligentes is more favorable than Allegiant Travel.
Insider & Institutional Ownership
0.9% of Gol Linhas Aereas Inteligentes shares are held by institutional investors. Comparatively, 89.3% of Allegiant Travel shares are held by institutional investors. 20.8% of Allegiant Travel shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Gol Linhas Aereas Inteligentes and Allegiant Travel’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gol Linhas Aereas Inteligentes||0.08%||-7.05%||2.40%|
Allegiant Travel beats Gol Linhas Aereas Inteligentes on 10 of the 16 factors compared between the two stocks.
Gol Linhas Aereas Inteligentes Company Profile
GOL Linhas Aéreas Inteligentes S.A. provides scheduled air transportation services for passengers cargoes, and mailbags in Brazil and Latin America. The company operates through Flight Transportation and Smiles Loyalty Program segments. It also offers logistics services. In addition, the company offers Smiles loyalty programs with approximately 13.7 million members, allowing clients to accumulate and redeem miles. As of December 31, 2017, it operated a single fleet of 119 Boeing 737 aircraft and approximately 700 daily flights to 64 destinations in Brazil, South America, and the Caribbean. GOL Linhas Aéreas Inteligentes S.A. was founded in 2001 and is based in Sao Paulo, Brazil.
Allegiant Travel Company Profile
Allegiant Travel Company, a leisure travel company, focuses on the provision of travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited frequency nonstop flights between under-served cities and leisure destinations. As of February 2, 2018, it operated a fleet of 37 MD-80 aircraft and 53 Airbus A320 series aircraft provided services on 396 routes to 119 cities. The company also provides air-related services and products in conjunction with air transportation, including convenience fees, baggage fees, advance seat assignments, travel protection products, change fees, priority boarding, food and beverage purchases on board, and other air-related services, as well as use of its call center for purchases. In addition, it offers third party travel products, such as hotel rooms, ground transportation, and attractions; and air transportation services through fixed fee agreements and charter service on a year-round and ad-hoc basis. Further, the company offers leases spare engines to a third party; and offers management solutions to golf courses. Allegiant Travel Company was founded in 1997 and is based in Las Vegas, Nevada.
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