Critical Comparison: Grupo Aeroméxico (OTCMKTS:GRPAF) vs. Controladora Vuela Compania de Aviacion (NYSE:VLRS)

Controladora Vuela Compania de Aviacion (NYSE:VLRS) and Grupo Aeroméxico (OTCMKTS:GRPAF) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Insider & Institutional Ownership

53.3% of Controladora Vuela Compania de Aviacion shares are held by institutional investors. 2.5% of Controladora Vuela Compania de Aviacion shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Controladora Vuela Compania de Aviacion and Grupo Aeroméxico’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Controladora Vuela Compania de Aviacion	-5.71%	-93.91%	-3.29%
Grupo Aeroméxico	N/A	N/A	N/A

Earnings and Valuation

This table compares Controladora Vuela Compania de Aviacion and Grupo Aeroméxico”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Controladora Vuela Compania de Aviacion	$3.30 billion	0.25	-$103.87 million	($1.64)	-4.27
Grupo Aeroméxico	N/A	N/A	N/A	N/A	N/A

Grupo Aeroméxico has lower revenue, but higher earnings than Controladora Vuela Compania de Aviacion.

Analyst Ratings

This is a summary of current ratings and recommmendations for Controladora Vuela Compania de Aviacion and Grupo Aeroméxico, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Controladora Vuela Compania de Aviacion	2	4	4	0	2.20
Grupo Aeroméxico	0	0	0	0	0.00

Controladora Vuela Compania de Aviacion currently has a consensus target price of $9.73, suggesting a potential upside of 38.93%. Given Controladora Vuela Compania de Aviacion’s stronger consensus rating and higher probable upside, research analysts plainly believe Controladora Vuela Compania de Aviacion is more favorable than Grupo Aeroméxico.

Summary

Controladora Vuela Compania de Aviacion beats Grupo Aeroméxico on 6 of the 9 factors compared between the two stocks.

About Controladora Vuela Compania de Aviacion

Controladora Vuela Compañía de Aviación, S.A.B. de C.V., through its subsidiary, Concesionaria Vuela Compañía de Aviación, S.A.P.I. de C.V., provides air transportation services for passengers, cargo, and mail in Mexico and internationally. The company operates approximately 590 daily flights on routes connecting 43 cities in Mexico, 22 cities in the United States, 4 cities in Central America, and 2 cities in South America. As of December 31, 2022, it leased 116 aircrafts and 23 spare engines. The company also offers merchandising, travel agency, and loyalty program, as well as specialized and aeronautical technical services. Controladora Vuela Compañía de Aviación, S.A.B. de C.V. was incorporated in 2005 and is headquartered in Mexico City, Mexico.

About Grupo Aeroméxico

Grupo Aeroméxico, S.A.B. de C.V., through its subsidiaries, provides commercial aviation services for passengers and cargo. It provides services to 43 destinations in Mexico and 42 international destinations from Mexico. The company also promotes passenger loyalty programs. As of July 19, 2019, it had a fleet of 122 airplanes that include Boeing 787 and 737 jet airliners and Embraer 170 and 190 models. The company was founded in 1934 and is headquartered in Mexico City, Mexico.