SkyWest (NASDAQ: SKYW) and Ryanair Holdings PLC (NASDAQ:RYAAY) are both transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for SkyWest and Ryanair Holdings PLC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SkyWest 0 2 2 1 2.80
Ryanair Holdings PLC 2 2 8 0 2.50

SkyWest presently has a consensus price target of $41.50, indicating a potential upside of 20.29%. Ryanair Holdings PLC has a consensus price target of $96.00, indicating a potential downside of 16.59%. Given SkyWest’s stronger consensus rating and higher possible upside, research analysts plainly believe SkyWest is more favorable than Ryanair Holdings PLC.

Institutional and Insider Ownership

90.3% of SkyWest shares are held by institutional investors. Comparatively, 38.7% of Ryanair Holdings PLC shares are held by institutional investors. 3.5% of SkyWest shares are held by 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.

Earnings and Valuation

This table compares SkyWest and Ryanair Holdings PLC’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SkyWest $3.13 billion 0.57 $618.51 million ($2.83) -12.19
Ryanair Holdings PLC N/A N/A N/A $6.48 17.76

SkyWest has higher revenue and earnings than Ryanair Holdings PLC. SkyWest is trading at a lower price-to-earnings ratio than Ryanair Holdings PLC, indicating that it is currently the more affordable of the two stocks.

Dividends

SkyWest pays an annual dividend of $0.32 per share and has a dividend yield of 0.9%. Ryanair Holdings PLC does not pay a dividend. SkyWest pays out -11.3% of its earnings in the form of a dividend.

Volatility & Risk

SkyWest has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Ryanair Holdings PLC has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Profitability

This table compares SkyWest and Ryanair Holdings PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SkyWest -4.59% 11.10% 3.06%
Ryanair Holdings PLC 21.44% 34.02% 13.43%

Summary

SkyWest beats Ryanair Holdings PLC on 9 of the 14 factors compared between the two stocks.

About SkyWest

SkyWest, Inc., through its subsidiaries, SkyWest Airlines, Inc. (SkyWest Airlines) and ExpressJet Airlines, Inc. (ExpressJet), operates regional airline operations in the United States. The Company’s segments include SkyWest Airlines, ExpressJet and SkyWest Leasing. The SkyWest Airlines segment provides regional jet service to airports primarily located in the Midwestern and Western United States, as well as Mexico and Canada. The ExpressJet segment provides regional jet service to airports primarily located in the Eastern and Midwestern United States, as well as Mexico, Canada and the Caribbean. The SkyWest Leasing segment includes its E175 aircraft ownership business. As of December 31, 2016, the Company offered scheduled passenger service with approximately 3,160 daily departures to destinations in the United States, Canada, Mexico and the Caribbean. The Company’s flights are operated as Delta Connection, United Express, American Eagle or Alaska Airlines.

About Ryanair Holdings PLC

Ryanair Holdings plc (Ryanair Holdings) is a holding company for Ryanair Limited (Ryanair). Ryanair operates an ultra-low fare, scheduled-passenger airline serving short-haul, point-to-point routes between Ireland, the United Kingdom, Continental Europe, Morocco and Israel. Ryanair provides various ancillary services and engages in other activities connected with its core air passenger service, including non-flight scheduled services, Internet-related services, and the in-flight sale of beverages, food and merchandise. Ryanair markets accommodation services and travel insurance through its Website. It provides hotel and accommodation services. Ryanair provides its own aircraft and passenger handling and ticketing services at Dublin Airport. As of June 30, 2016, Ryanair had a principal fleet of over 350 Boeing 737-800 aircraft and offered over 2,000 scheduled short-haul flights per day serving approximately 200 airports throughout Europe.

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