Analyzing easyJet (EJTTF) and JetBlue Airways (JBLU)

easyJet (OTCMKTS: EJTTF) and JetBlue Airways (NASDAQ:JBLU) are both mid-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Institutional & Insider Ownership

91.3% of JetBlue Airways shares are held by institutional investors. 0.6% of JetBlue Airways shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for easyJet and JetBlue Airways, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
easyJet 0 1 1 0 2.50
JetBlue Airways 1 9 4 0 2.21

JetBlue Airways has a consensus price target of $22.58, indicating a potential upside of 22.37%. Given JetBlue Airways’ higher probable upside, analysts clearly believe JetBlue Airways is more favorable than easyJet.

Profitability

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

Net Margins Return on Equity Return on Assets
easyJet N/A N/A N/A
JetBlue Airways 11.30% 10.80% 4.98%

Risk and Volatility

easyJet has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, JetBlue Airways has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Valuation and Earnings

This table compares easyJet and JetBlue Airways’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
easyJet $6.40 billion 1.36 $386.55 million N/A N/A
JetBlue Airways $7.02 billion 0.82 $1.15 billion $1.71 10.79

JetBlue Airways has higher revenue and earnings than easyJet.

Summary

JetBlue Airways beats easyJet on 9 of the 12 factors compared between the two stocks.

easyJet Company Profile

easyJet plc, together with its subsidiaries, operates as an airline carrier primarily in Europe. As of September 30, 2017, it operated 862 routes and a fleet of 279 aircraft. The company also engages in the trading and leasing of aircrafts; and the provision of graphic design services. easyJet plc was founded in 1995 and is based in Luton, the United Kingdom.

JetBlue Airways Company Profile

JetBlue Airways Corporation, a passenger carrier company, provides air transportation services. As of December 31, 2017, the company operated a fleet of 53 Airbus A321 aircraft, 130 Airbus A320 aircraft, and 60 Embraer E190 aircraft. It also served 101 destinations in 30 states in the United States, the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, and 21 countries in the Caribbean and Latin America. JetBlue Airways Corporation was founded in 1998 and is based in Long Island City, New York.

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