Critical Review: Copa Holdings, (CPA) & JetBlue Airways Corporation (JBLU)
Copa Holdings, (NYSE: CPA) and JetBlue Airways Corporation (NASDAQ:JBLU) are both mid-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.
Volatility & Risk
Copa Holdings, has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, JetBlue Airways Corporation has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.
Institutional & Insider Ownership
64.3% of Copa Holdings, shares are owned by institutional investors. Comparatively, 84.5% of JetBlue Airways Corporation shares are owned by institutional investors. 0.6% of JetBlue Airways Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for Copa Holdings, and JetBlue Airways Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|JetBlue Airways Corporation||1||7||5||0||2.31|
Copa Holdings, currently has a consensus price target of $110.44, indicating a potential downside of 17.58%. JetBlue Airways Corporation has a consensus price target of $25.80, indicating a potential upside of 32.99%. Given JetBlue Airways Corporation’s higher possible upside, analysts clearly believe JetBlue Airways Corporation is more favorable than Copa Holdings,.
This table compares Copa Holdings, and JetBlue Airways Corporation’s 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%|
Copa Holdings, pays an annual dividend of $3.00 per share and has a dividend yield of 2.2%. JetBlue Airways Corporation does not pay a dividend. Copa Holdings, pays out 37.9% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Copa Holdings, and JetBlue Airways Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Copa Holdings,||$2.37 billion||2.40||$518.91 million||$7.91||16.94|
|JetBlue Airways Corporation||$6.82 billion||0.94||$1.54 billion||$1.97||9.85|
JetBlue Airways Corporation has higher revenue and earnings than Copa Holdings,. JetBlue Airways Corporation is trading at a lower price-to-earnings ratio than Copa Holdings,, indicating that it is currently the more affordable of the two stocks.
Copa Holdings, beats JetBlue Airways Corporation on 9 of the 16 factors compared between the two stocks.
About Copa Holdings,
Copa Holdings, S.A. is a provider of airline passenger and cargo service through its principal operating subsidiaries, Compania Panamena de Aviacion, S. A. (Copa Airlines) and AeroRepublica, S. A. (Copa Colombia). The Company operates through air transportation segment. Copa Airlines operates from its position located in the Republic of Panama. Copa Airlines provides international air transportation for passengers, cargo and mail, operating from its Panama City hub in the Republic of Panama. Copa Colombia provides service within Colombia and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mexico, Cuba, Guatemala and Costa Rica. Copa Colombia provides domestic and international air transportation for passengers, cargo and mail with a point-to-point route network. Its subsidiary, Oval Financial Leasing, Ltd., controls the special purpose entities that have a beneficial interest in the majority of its fleet.
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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