Azul SA (NASDAQ: AZUL) and SkyWest (NASDAQ:SKYW) are both mid-cap industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Azul SA and SkyWest, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Azul SA 0 0 4 0 3.00
SkyWest 0 2 2 1 2.80

Azul SA presently has a consensus target price of $32.33, suggesting a potential upside of 14.21%. SkyWest has a consensus target price of $41.50, suggesting a potential upside of 4.27%. Given Azul SA’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Azul SA is more favorable than SkyWest.

Valuation & Earnings

This table compares Azul SA and SkyWest’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Azul SA $2.26 billion 1.38 $276.07 million N/A N/A
SkyWest $3.13 billion 0.66 $618.51 million ($2.83) -14.06

SkyWest has higher revenue and earnings than Azul SA.

Institutional and Insider Ownership

89.4% of SkyWest shares are owned by institutional investors. 3.5% of SkyWest shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Azul SA and SkyWest’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Azul SA -1.97% -8.12% -1.58%
SkyWest -4.59% 11.10% 3.06%

Dividends

SkyWest pays an annual dividend of $0.32 per share and has a dividend yield of 0.8%. Azul SA does not pay a dividend. SkyWest pays out -11.3% of its earnings in the form of a dividend.

Summary

SkyWest beats Azul SA on 9 of the 15 factors compared between the two stocks.

Azul SA Company Profile

Azul SA is a Brazil-based company engaged in the provision of passenger transportation services. The Company primarily acts as an airline operator under the Azul brand name. The Company provides scheduled flights between numerous cities in Brazil, including Sao Paulo, Brasilia, Rio de Janeiro, Belo Horizonte, Porto Alegre, Curitiba, Manaus, Cuiaba, Fortaleza and Salvador, among others. In addition, its air network comprises international routes to the Unites States, Europe and other Latin American countries. The Company also offers Azul Cargo Express, a scheduled cargo transport service with airport-to-airport and door-to-door delivery. It owns a number of subsidiaries, such as Azul Linhas Aereas Brasileiras SA and Tudo Azul SA.

SkyWest Company Profile

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.

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