Era Group (NYSE: ERA) and Gol Linhas Aereas Inteligentes (NYSE:GOL) are both transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Era Group and Gol Linhas Aereas Inteligentes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Era Group -6.21% -3.10% -1.52%
Gol Linhas Aereas Inteligentes -2.70% -9.77% -3.27%

Valuation and Earnings

This table compares Era Group and Gol Linhas Aereas Inteligentes’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Era Group $233.70 million 1.01 $37.33 million ($0.70) -15.79
Gol Linhas Aereas Inteligentes $3.12 billion 0.54 $346.84 million ($1.20) -20.36

Gol Linhas Aereas Inteligentes has higher revenue and earnings than Era Group. Gol Linhas Aereas Inteligentes is trading at a lower price-to-earnings ratio than Era Group, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Era Group has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Gol Linhas Aereas Inteligentes has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Era Group and Gol Linhas Aereas Inteligentes, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Era Group 0 0 0 0 N/A
Gol Linhas Aereas Inteligentes 0 2 2 0 2.50

Gol Linhas Aereas Inteligentes has a consensus target price of $21.25, indicating a potential downside of 12.66%. Given Gol Linhas Aereas Inteligentes’ higher possible upside, analysts clearly believe Gol Linhas Aereas Inteligentes is more favorable than Era Group.

Institutional and Insider Ownership

86.8% of Era Group shares are owned by institutional investors. Comparatively, 0.0% of Gol Linhas Aereas Inteligentes shares are owned by institutional investors. 7.9% of Era Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Era Group Company Profile

Era Group Inc. is engaged in operating helicopters. The Company’s helicopters transport personnel to, from and between offshore oil and gas production platforms, drilling rigs and other installations. The Company also dry-leases helicopters to third-party helicopter operators and foreign affiliates. The primary users of the Company’s helicopter services are international, integrated and independent oil and gas exploration, development and production companies. In addition to serving the oil and gas industry, it provides air medical services; utility services, including support of firefighting, mining, power line and pipeline survey activities, and Alaska flightseeing tours, among other activities. It owns and operates a range of classes of helicopters, such as Heavy helicopters, Medium helicopters and Light helicopters. Heavy helicopters have twin engines and passenger capacity ranging from 16 to 19. Medium helicopters have twin engines and passenger capacity ranging from 11 to 12.

Gol Linhas Aereas Inteligentes Company Profile

Gol Linhas Aereas Inteligentes SA is a Brazil-based airline company. The Company focuses on carrying passengers to over 60 destinations, approximately 50 in Brazil and 10 in South America and the Caribbean. The Company’s fleet includes approximately 120 Boeing 737 aircrafts. The Company operates through two segments: Air transportation and Loyalty program. The Air transportation segment operations originate from its subsidiary Gol Linhas Aereas SA (GLA) for the provision of air transportation services. Its operations also include cargo operations and excess baggage. The Loyalty program segment operations are represented by SMILES coalition loyalty program, which enables clients to accumulate miles and redeem tickets for more than 700 locations worldwide.

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