JetBlue Airways (NASDAQ:JBLU) and Air Canada (NASDAQ:ACDVF) Critical Review

JetBlue Airways (NASDAQ:JBLU) and Air Canada (OTCMKTS:ACDVF) are both mid-cap transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Valuation and Earnings

This table compares JetBlue Airways and Air Canada’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
JetBlue Airways $7.66 billion 0.73 $188.00 million $1.55 12.12
Air Canada $13.94 billion 0.63 $128.84 million N/A N/A



JetBlue Airways has higher earnings, but lower revenue than Air Canada.

Insider and Institutional Ownership

94.8% of JetBlue Airways shares are held by institutional investors. Comparatively, 0.1% of Air Canada shares are held by institutional investors. 0.8% of JetBlue Airways shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for JetBlue Airways and Air Canada, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JetBlue Airways 2 6 6 0 2.29
Air Canada 0 1 4 0 2.80

JetBlue Airways currently has a consensus price target of $20.63, suggesting a potential upside of 9.87%. Air Canada has a consensus price target of $32.00, suggesting a potential downside of 3.31%. Given JetBlue Airways’ higher possible upside, research analysts clearly believe JetBlue Airways is more favorable than Air Canada.

Profitability

This table compares JetBlue Airways and Air Canada’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JetBlue Airways 5.53% 11.35% 4.85%
Air Canada 5.85% 21.91% 3.94%

Summary

JetBlue Airways beats Air Canada on 7 of the 12 factors compared between the two stocks.

JetBlue Airways Company Profile

JetBlue Airways Corporation, a passenger carrier company, provides air transportation services. As of December 31, 2018, the company operated a fleet of 63 Airbus A321 aircraft, 130 Airbus A320 aircraft, and 60 Embraer E190 aircraft. It also served 105 destinations in the 31 states in the United States, the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, and 21 countries in the Caribbean and Latin America. JetBlue Airways Corporation was founded in 1998 and is based in Long Island City, New York.

Air Canada Company Profile

Air Canada provides domestic, U.S. transborder, and international airline services. It offers scheduled passenger services under the Air Canada Vacations and Air Canada Rouge brand name in the Canadian market, the Canada-U.S. transborder market, and in the international market to and from Canada, as well as through capacity purchase agreements on other regional carriers. As of December 31, 2018, the company operated a fleet of 184 aircraft under the Air Canada mainline brand name comprising 91 Boeing and Airbus narrow-body aircraft, 74 Boeing and Airbus wide-body aircraft, and 19 Embraer 190 regional jets; and 53 aircraft under the Air Canada Rouge brand name consisting of 22 Airbus A319 aircraft, 6 Airbus A321 aircraft, and 25 Boeing 767-300 aircraft. It also provides air cargo services in domestic and U.S. transborder routes, as well as on international routes between Canada and markets in Europe, Asia, South America, and Australia. In addition, the company operates, develops, markets, and distributes vacation travel packages in the Caribbean, Mexico, the United States, Europe, Central and South America, South Pacific, Australia, and Asia; and offers cruise packages in North America, Europe, and the Caribbean. Air Canada was founded in 1937 and is based in Saint-Laurent, Canada.

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