Great Lakes Aviation (OTCMKTS:GLUX) and American Airlines Group (NASDAQ:AAL) are both 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.

Earnings and Valuation

This table compares Great Lakes Aviation and American Airlines Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Great Lakes Aviation N/A N/A N/A N/A N/A
American Airlines Group $42.21 billion 0.40 $1.92 billion $4.88 7.43

American Airlines Group has higher revenue and earnings than Great Lakes Aviation.

Risk & Volatility

Great Lakes Aviation has a beta of 3.33, indicating that its stock price is 233% more volatile than the S&P 500. Comparatively, American Airlines Group has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.

Dividends

American Airlines Group pays an annual dividend of $0.40 per share and has a dividend yield of 1.1%. Great Lakes Aviation does not pay a dividend. American Airlines Group pays out 8.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Great Lakes Aviation and American Airlines Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Great Lakes Aviation 0 0 0 0 N/A
American Airlines Group 0 3 12 0 2.80

American Airlines Group has a consensus price target of $49.00, indicating a potential upside of 35.10%. Given American Airlines Group’s higher probable upside, analysts clearly believe American Airlines Group is more favorable than Great Lakes Aviation.

Profitability

This table compares Great Lakes Aviation and American Airlines Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Great Lakes Aviation N/A N/A N/A
American Airlines Group 3.06% 568.86% 3.99%

Insider & Institutional Ownership

84.5% of American Airlines Group shares are held by institutional investors. 63.0% of Great Lakes Aviation shares are held by company insiders. Comparatively, 0.7% of American Airlines Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

American Airlines Group beats Great Lakes Aviation on 8 of the 11 factors compared between the two stocks.

About Great Lakes Aviation

Great Lakes Aviation, Ltd., a regional airline company, operates as an independent carrier and code share partner with United Air Lines, Inc. in the United States. The company offers scheduled air service to its hubs under the Great Lakes brand; and carries cargo on its scheduled flights. As of March 20, 2015, it served 28 airports in 9 states with a fleet of 6 Embraer EMB-120 Brasilias and 28 Beechcraft 1900D regional airliners. The company was founded in 1979 and is headquartered in Cheyenne, Wyoming.

About American Airlines Group

American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. It provides scheduled air transportation services for passengers and cargo. As of December 31, 2017, the company operated a mainline fleet of 948 aircraft. It serves 350 destinations in approximately 50 countries, principally from its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, and Phoenix, as well as in Washington, D.C. The company was formerly known as AMR Corporation and changed its name to American Airlines Group Inc. in December 2013. American Airlines Group Inc. was founded in 1934 and is headquartered in Fort Worth, Texas.

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