JetBlue Airways Corporation (JBLU) versus The Competition Critical Analysis
JetBlue Airways Corporation (NASDAQ: JBLU) is one of 31 publicly-traded companies in the “Airlines” industry, but how does it contrast to its competitors? We will compare JetBlue Airways Corporation to related businesses based on the strength of its dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.
This table compares JetBlue Airways Corporation and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|JetBlue Airways Corporation||9.78%||16.75%||6.99%|
|JetBlue Airways Corporation Competitors||3.54%||9.92%||3.44%|
Valuation & Earnings
This table compares JetBlue Airways Corporation and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|JetBlue Airways Corporation||$6.82 billion||$1.54 billion||9.82|
|JetBlue Airways Corporation Competitors||$8.57 billion||$1.56 billion||-90.88|
JetBlue Airways Corporation’s competitors have higher revenue and earnings than JetBlue Airways Corporation. JetBlue Airways Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Risk & Volatility
JetBlue Airways Corporation has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, JetBlue Airways Corporation’s competitors have a beta of 1.20, indicating that their average stock price is 20% more volatile than the S&P 500.
Institutional & Insider Ownership
84.5% of JetBlue Airways Corporation shares are owned by institutional investors. Comparatively, 79.0% of shares of all “Airlines” companies are owned by institutional investors. 0.6% of JetBlue Airways Corporation shares are owned by insiders. Comparatively, 5.5% of shares of all “Airlines” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a summary of recent ratings and target prices for JetBlue Airways Corporation and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|JetBlue Airways Corporation||1||7||5||0||2.31|
|JetBlue Airways Corporation Competitors||312||1118||2155||103||2.56|
JetBlue Airways Corporation currently has a consensus target price of $25.80, suggesting a potential upside of 33.33%. As a group, “Airlines” companies have a potential downside of 7.01%. Given JetBlue Airways Corporation’s higher probable upside, analysts clearly believe JetBlue Airways Corporation is more favorable than its competitors.
JetBlue Airways Corporation competitors beat JetBlue Airways Corporation on 7 of the 13 factors compared.
About JetBlue Airways Corporation
JetBlue Airways Corporation is a passenger carrier company. The Company provides air transportation services across the United States, the Caribbean and Latin America. Its segments include Domestic, and Caribbean & Latin America. It operates various kinds of aircrafts, including Airbus A321, Airbus A320 and Embraer E190. It also provides premium transcontinental product called Mint. As of December 31, 2016, Mint included 16 fully lie-flat seats, four of which were in suites with a privacy door. The Company also provides Fly-Fi in-flight Internet service across its Airbus fleet. It provides its customers a choice to purchase tickets from three branded fares, which include Blue, Blue Plus and Blue Flex. Each of these fare include different offerings, such as free checked bags, reduced change fees and additional TrueBlue points. As of December 31, 2016, its Airbus A321 aircraft in a single cabin layout had 200 seats and those with Mint premium service had a seating capacity of 159 seats.
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