Financial Analysis: JetBlue Airways Corporation (JBLU) vs. The Competition
JetBlue Airways Corporation (NASDAQ: JBLU) is one of 31 publicly-traded companies in the “Airlines” industry, but how does it weigh in compared to its rivals? We will compare JetBlue Airways Corporation to related companies based on the strength of its earnings, analyst recommendations, profitability, dividends, risk, institutional ownership and valuation.
Risk and Volatility
JetBlue Airways Corporation has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, JetBlue Airways Corporation’s rivals have a beta of 1.20, indicating that their average share price is 20% more volatile than the S&P 500.
Earnings and Valuation
This table compares JetBlue Airways Corporation and its rivals revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|JetBlue Airways Corporation||$6.82 billion||$1.54 billion||9.41|
|JetBlue Airways Corporation Competitors||$8.61 billion||$1.57 billion||-83.61|
JetBlue Airways Corporation’s rivals have higher revenue and earnings than JetBlue Airways Corporation. JetBlue Airways Corporation is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
This table compares JetBlue Airways Corporation and its rivals’ 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||3.58%||9.88%||3.39%|
Institutional & Insider Ownership
84.5% of JetBlue Airways Corporation shares are owned by institutional investors. Comparatively, 78.9% 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and price targets for JetBlue Airways Corporation and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|JetBlue Airways Corporation||1||8||5||0||2.29|
|JetBlue Airways Corporation Competitors||317||1136||2185||104||2.55|
JetBlue Airways Corporation currently has a consensus price target of $25.36, suggesting a potential upside of 36.88%. As a group, “Airlines” companies have a potential downside of 5.97%. Given JetBlue Airways Corporation’s higher probable upside, equities analysts plainly believe JetBlue Airways Corporation is more favorable than its rivals.
JetBlue Airways Corporation rivals beat JetBlue Airways Corporation on 7 of the 13 factors compared.
JetBlue Airways Corporation Company Profile
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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