easyJet (EJTTF) versus United Continental (UAL) Critical Analysis

easyJet (OTCMKTS: EJTTF) and United Continental (NYSE:UAL) are both transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Volatility & Risk

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easyJet has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500. Comparatively, United Continental has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Valuation & Earnings

This table compares easyJet and United Continental’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
easyJet $6.40 billion 1.44 $386.55 million N/A N/A
United Continental $37.74 billion 0.50 $2.13 billion $6.76 9.84

United Continental has higher revenue and earnings than easyJet.

Insider & Institutional Ownership

95.3% of United Continental shares are owned by institutional investors. 0.3% of United Continental shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares easyJet and United Continental’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
easyJet N/A N/A N/A
United Continental 5.65% 23.40% 4.87%

Analyst Recommendations

This is a summary of recent ratings and price targets for easyJet and United Continental, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
easyJet 0 1 1 0 2.50
United Continental 0 8 9 0 2.53

United Continental has a consensus price target of $85.65, indicating a potential upside of 28.81%. Given United Continental’s stronger consensus rating and higher probable upside, analysts plainly believe United Continental is more favorable than easyJet.

Summary

United Continental beats easyJet on 10 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.

United Continental Company Profile

United Continental Holdings, Inc., together with its subsidiaries, provides air transportation services in North America, the Asia-Pacific, Europe, the Middle East, Africa, and Latin America. It transports people and cargo through its mainline and regional operations. As of December 31, 2017, the company operated a fleet of 1,262 aircraft. It also sells fuel; and offers catering, ground handling, and maintenance services for third parties. The company was formerly known as UAL Corporation and changed its name to United Continental Holdings, Inc. in October 2010. United Continental Holdings, Inc. was founded in 1934 and is based in Chicago, Illinois.

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