Critical Review: JetBlue Airways (NASDAQ:JBLU) and Azul (NYSE:AZUL)

Azul (NYSE:AZUL) and JetBlue Airways (NASDAQ:JBLU) are both small-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Earnings and Valuation

This table compares Azul and JetBlue Airways”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Azul	$21.75 billion	0.07	N/A	N/A	N/A
JetBlue Airways	$9.50 billion	0.19	-$602.00 million	($2.39)	-2.05

Azul has higher revenue and earnings than JetBlue Airways.

Profitability

This table compares Azul and JetBlue Airways’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Azul	N/A	N/A	N/A
JetBlue Airways	-9.32%	-45.92%	-5.41%

Institutional & Insider Ownership

0.8% of Azul shares are held by institutional investors. Comparatively, 83.7% of JetBlue Airways shares are held by institutional investors. 1.0% of Azul shares are held by company insiders. Comparatively, 2.4% of JetBlue Airways shares are held by company 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Azul and JetBlue Airways, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Azul	2	0	1	0	1.67
JetBlue Airways	6	5	0	1	1.67

Azul presently has a consensus target price of $20.00, suggesting a potential upside of 156.08%. JetBlue Airways has a consensus target price of $5.40, suggesting a potential upside of 10.53%. Given Azul’s higher probable upside, analysts clearly believe Azul is more favorable than JetBlue Airways.

Summary

Azul beats JetBlue Airways on 6 of the 10 factors compared between the two stocks.

About Azul

AZUL S.A. is an airline company. AZUL S.A. is based in S?O PAULO.

About JetBlue Airways

JetBlue Airways Corporation provides air transportation services. The company operates a fleet of Airbus A321, Airbus A220, Airbus A321neo, Airbus A320 Restyled, Airbus A320, Airbus A321 with Mint, Airbus A321neo with Mint, Airbus A321neoLR with Mint, and Embraer E190 aircraft. It also serves 100 destinations across the United States, the Caribbean and Latin America, Canada, and Europe. The company was incorporated in 1998 and is based in Long Island City, New York.