Azul (AZUL) vs. Era Group (ERA) Financial Analysis

Azul (NYSE: AZUL) and Era Group (NYSE:ERA) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Azul N/A N/A N/A
Era Group -41.46% -4.53% -2.20%

Institutional and Insider Ownership

4.6% of Azul shares are owned by institutional investors. Comparatively, 83.4% of Era Group shares are owned by institutional investors. 7.9% of Era Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Azul and Era Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Azul 0 0 5 0 3.00
Era Group 0 0 0 0 N/A

Azul currently has a consensus price target of $30.95, suggesting a potential upside of 13.06%. Given Azul’s higher possible upside, equities analysts plainly believe Azul is more favorable than Era Group.

Earnings & Valuation

This table compares Azul and Era Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Azul $1.91 billion 4.60 -$36.21 million $0.16 171.06
Era Group $247.23 million 0.85 -$7.97 million ($4.59) -2.15

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

Summary

Azul beats Era Group on 9 of the 12 factors compared between the two stocks.

About Azul

Azul SA is a Brazil-based company engaged in the provision of passenger transportation services. The Company primarily acts as an airline operator under the Azul brand name. The Company provides scheduled flights between numerous cities in Brazil, including Sao Paulo, Brasilia, Rio de Janeiro, Belo Horizonte, Porto Alegre, Curitiba, Manaus, Cuiaba, Fortaleza and Salvador, among others. In addition, its air network comprises international routes to the Unites States, Europe and other Latin American countries. The Company also offers Azul Cargo Express, a scheduled cargo transport service with airport-to-airport and door-to-door delivery. It owns a number of subsidiaries, such as Azul Linhas Aereas Brasileiras SA and Tudo Azul SA.

About Era Group

Era Group Inc. is engaged in operating helicopters. The Company’s helicopters transport personnel to, from and between offshore oil and gas production platforms, drilling rigs and other installations. The Company also dry-leases helicopters to third-party helicopter operators and foreign affiliates. The primary users of the Company’s helicopter services are international, integrated and independent oil and gas exploration, development and production companies. In addition to serving the oil and gas industry, it provides air medical services; utility services, including support of firefighting, mining, power line and pipeline survey activities, and Alaska flightseeing tours, among other activities. It owns and operates a range of classes of helicopters, such as Heavy helicopters, Medium helicopters and Light helicopters. Heavy helicopters have twin engines and passenger capacity ranging from 16 to 19. Medium helicopters have twin engines and passenger capacity ranging from 11 to 12.

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