Financial Analysis: Controladora Vuela Compania de Aviacion (NYSE:VLRS) versus Grupo Aeroméxico (OTCMKTS:GRPAF)

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

Profitability

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

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Grupo Aeroméxico and Controladora Vuela Compania de Aviacion, as reported by MarketBeat.com.

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

Controladora Vuela Compania de Aviacion has a consensus price target of $9.73, indicating a potential upside of 40.53%. Given Controladora Vuela Compania de Aviacion’s stronger consensus rating and higher possible upside, analysts plainly believe Controladora Vuela Compania de Aviacion is more favorable than Grupo Aeroméxico.

Institutional and Insider Ownership

53.3% of Controladora Vuela Compania de Aviacion shares are owned by institutional investors. 2.5% of Controladora Vuela Compania de Aviacion shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Aeroméxico	N/A	N/A	N/A	N/A	N/A
Controladora Vuela Compania de Aviacion	$3.04 billion	0.27	-$103.87 million	($1.64)	-4.22

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

Summary

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

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.

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.