Great Lakes Aviation (OTCMKTS:GLUX) and Avianca (NYSE:AVH) are both small-cap transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Earnings and Valuation

This table compares Great Lakes Aviation and Avianca’s 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
Avianca $4.44 billion 0.10 $82.03 million $0.40 13.35

Avianca has higher revenue and earnings than Great Lakes Aviation.

Risk and Volatility

Great Lakes Aviation has a beta of 3.21, indicating that its share price is 221% more volatile than the S&P 500. Comparatively, Avianca has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Dividends

Avianca pays an annual dividend of $0.69 per share and has a dividend yield of 12.9%. Great Lakes Aviation does not pay a dividend. Avianca pays out 172.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent recommendations for Great Lakes Aviation and Avianca, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Great Lakes Aviation 0 0 0 0 N/A
Avianca 1 2 0 0 1.67

Avianca has a consensus price target of $7.75, indicating a potential upside of 45.13%. Given Avianca’s higher probable upside, analysts clearly believe Avianca is more favorable than Great Lakes Aviation.

Profitability

This table compares Great Lakes Aviation and Avianca’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
Avianca N/A N/A N/A

Insider & Institutional Ownership

5.8% of Avianca shares are owned by institutional investors. 63.0% of Great Lakes Aviation 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.

Summary

Avianca beats Great Lakes Aviation on 4 of the 7 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 Avianca

Avianca Holdings S.A., through its subsidiaries, provides passenger and cargo air transportation services in North America, Central America, the Caribbean, Colombia, Europe, South America, and internationally. It also offers aircraft maintenance, crew training, and other airport services to other carriers, as well as travel and cargo related services to its customers. In addition, the company is involved in the ground operations for third–party airlines, and aircraft leasing activities; and operates LifeMiles, a frequent flyer program. As of December 31, 2017, it operated a fleet of 186 aircraft, including 144 jet passenger aircrafts, 30 turboprop passenger aircrafts, and 12 cargo aircrafts. The company was formerly known as AviancaTaca Holding S.A. and changed its name to Avianca Holdings S.A. in March 2013. The company was founded in 1919 and is based in Panama City, Panama. Avianca Holdings S.A. is a subsidiary of Synergy Aerospace Corp.

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