American Airlines Group (NASDAQ:AAL – Get Free Report) and JetBlue Airways (NASDAQ:JBLU – Get Free Report) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.
Risk & Volatility
American Airlines Group has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, JetBlue Airways has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500.
Valuation and Earnings
This table compares American Airlines Group and JetBlue Airways”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Airlines Group | $54.63 billion | 0.16 | $111.00 million | ($0.73) | -18.04 |
| JetBlue Airways | $9.06 billion | 0.16 | -$602.00 million | ($2.68) | -1.40 |
American Airlines Group has higher revenue and earnings than JetBlue Airways. American Airlines Group is trading at a lower price-to-earnings ratio than JetBlue Airways, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares American Airlines Group and JetBlue Airways’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Airlines Group | -0.79% | -9.11% | -0.38% |
| JetBlue Airways | -10.01% | -56.96% | -5.96% |
Institutional and Insider Ownership
52.4% of American Airlines Group shares are owned by institutional investors. Comparatively, 83.7% of JetBlue Airways shares are owned by institutional investors. 0.7% of American Airlines Group shares are owned by company insiders. Comparatively, 2.4% of JetBlue Airways shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for American Airlines Group and JetBlue Airways, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Airlines Group | 2 | 10 | 9 | 0 | 2.33 |
| JetBlue Airways | 4 | 9 | 1 | 0 | 1.79 |
American Airlines Group currently has a consensus price target of $17.28, suggesting a potential upside of 31.19%. JetBlue Airways has a consensus price target of $4.98, suggesting a potential upside of 32.42%. Given JetBlue Airways’ higher probable upside, analysts plainly believe JetBlue Airways is more favorable than American Airlines Group.
Summary
American Airlines Group beats JetBlue Airways on 9 of the 14 factors compared between the two stocks.
About American Airlines Group
American Airlines Group Inc. is a holding company whose principal business is operating a global airline through American Airlines and its regional partners. The company provides scheduled passenger and cargo air transportation, along with related services such as loyalty programs and travel offerings. Its network connects destinations across the United States and serves markets in the Caribbean, Latin America, Europe and the Asia-Pacific region. Regional flights are operated under the American Eagle brand by affiliated carriers.
About JetBlue Airways
JetBlue Airways Corporation is a U.S. passenger airline headquartered in Long Island City, New York. Founded in 1998, the company began flying in 2000 and operates scheduled service across the United States and to destinations in the Caribbean, Latin America, Canada and Europe. The airline offers economy and premium travel options, including its Mint business-class service on select routes and additional-legroom seating. JetBlue also provides loyalty rewards through its TrueBlue program and sells vacation packages combining flights with other travel services.
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