Analyzing International Consolidated Airlines Group (OTCMKTS:BABWF) and Azul (NYSE:AZUL)

International Consolidated Airlines Group (OTCMKTS:BABWF) and Azul (NYSE:AZUL) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Profitability

This table compares International Consolidated Airlines Group and Azul’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Consolidated Airlines Group	N/A	N/A	N/A
Azul	-3.85%	N/A	-12.30%

Institutional & Insider Ownership

39.6% of International Consolidated Airlines Group shares are owned by institutional investors. Comparatively, 0.8% of Azul shares are owned by institutional investors. 1.0% of Azul shares are owned by insiders. 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.

Earnings and Valuation

This table compares International Consolidated Airlines Group and Azul’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Consolidated Airlines Group	N/A	N/A	N/A	$0.38	5.60
Azul	$3.09 billion	1.16	-$139.92 million	($1.32)	-6.46

International Consolidated Airlines Group has higher earnings, but lower revenue than Azul. Azul is trading at a lower price-to-earnings ratio than International Consolidated Airlines Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for International Consolidated Airlines Group and Azul, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Consolidated Airlines Group	0	0	0	0	N/A
Azul	0	2	4	0	2.67

Azul has a consensus price target of $13.16, indicating a potential upside of 54.37%. Given Azul’s higher probable upside, analysts clearly believe Azul is more favorable than International Consolidated Airlines Group.

Summary

International Consolidated Airlines Group beats Azul on 5 of the 9 factors compared between the two stocks.

About International Consolidated Airlines Group

International Consolidated Airlines Group S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the United Kingdom, Spain, the United States, and rest of the world. It also provides aircraft leasing, aircraft maintenance, tour operation, air freight operations, call centre, ground handling, trustee, retail, IT, finance, procurement, storage and custody, aircraft technical assistance, human resources support, and airport infrastructure development services; and manages airline loyalty programmes. The company operates under the British Airways, Iberia, Vueling, Aer Lingus, and LEVEL brands. It operates a fleet of 582 aircrafts. The company was incorporated in 2009 and is headquartered in Harmondsworth, United Kingdom.

About Azul

Azul S.A., together with its subsidiaries, provides scheduled air transportation services in Brazil. As of December 31, 2022, the company operated approximately 1,000 daily departures to 158 destinations through a network of 300 non-stop routes with an operating fleet of 177 aircraft and a passenger contractual fleet of 194 aircraft. It is also involved in the cargo transportation, loyalty programs, travel packages, funding, logistics solutions, and aircraft financing activities. The company was incorporated in 2008 and is headquartered in Barueri, Brazil.