Ryanair Holdings PLC (NASDAQ: RYAAY) and Gol Linhas Aereas Inteligentes (NYSE:GOL) are both large-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Earnings & Valuation

This table compares Ryanair Holdings PLC and Gol Linhas Aereas Inteligentes’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ryanair Holdings PLC $8.26 billion 3.12 $2.63 billion $6.48 16.49
Gol Linhas Aereas Inteligentes $3.12 billion 0.53 $346.84 million ($1.20) -19.90

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

Institutional and Insider Ownership

40.4% of Ryanair Holdings PLC shares are held by institutional investors. Comparatively, 0.0% of Gol Linhas Aereas Inteligentes shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Ryanair Holdings PLC and Gol Linhas Aereas Inteligentes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ryanair Holdings PLC 21.44% 34.02% 13.43%
Gol Linhas Aereas Inteligentes -2.70% -9.77% -3.27%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Ryanair Holdings PLC and Gol Linhas Aereas Inteligentes, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ryanair Holdings PLC 4 1 6 0 2.18
Gol Linhas Aereas Inteligentes 0 2 2 0 2.50

Ryanair Holdings PLC currently has a consensus target price of $96.00, suggesting a potential downside of 10.16%. Gol Linhas Aereas Inteligentes has a consensus target price of $21.25, suggesting a potential downside of 10.64%. Given Ryanair Holdings PLC’s higher probable upside, equities analysts clearly believe Ryanair Holdings PLC is more favorable than Gol Linhas Aereas Inteligentes.

Risk and Volatility

Ryanair Holdings PLC has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Gol Linhas Aereas Inteligentes has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500.

Summary

Ryanair Holdings PLC beats Gol Linhas Aereas Inteligentes on 10 of the 12 factors compared between the two stocks.

About Ryanair Holdings PLC

Ryanair Holdings plc (Ryanair Holdings) is a holding company for Ryanair Limited (Ryanair). Ryanair operates an ultra-low fare, scheduled-passenger airline serving short-haul, point-to-point routes between Ireland, the United Kingdom, Continental Europe, Morocco and Israel. Ryanair provides various ancillary services and engages in other activities connected with its core air passenger service, including non-flight scheduled services, Internet-related services, and the in-flight sale of beverages, food and merchandise. Ryanair markets accommodation services and travel insurance through its Website. It provides hotel and accommodation services. Ryanair provides its own aircraft and passenger handling and ticketing services at Dublin Airport. As of June 30, 2016, Ryanair had a principal fleet of over 350 Boeing 737-800 aircraft and offered over 2,000 scheduled short-haul flights per day serving approximately 200 airports throughout Europe.

About Gol Linhas Aereas Inteligentes

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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