Financial Survey: Great Lakes Aviation (GLUX) and SkyWest (SKYW)

Great Lakes Aviation (OTCMKTS:GLUX) and SkyWest (NASDAQ:SKYW) are both transportation companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.

Volatility & Risk

Great Lakes Aviation has a beta of 3.22, meaning that its share price is 222% more volatile than the S&P 500. Comparatively, SkyWest has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.

Insider and Institutional Ownership

90.6% of SkyWest shares are held by institutional investors. 63.0% of Great Lakes Aviation shares are held by company insiders. Comparatively, 3.6% of SkyWest shares are held by company 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.

Dividends

SkyWest pays an annual dividend of $0.40 per share and has a dividend yield of 0.7%. Great Lakes Aviation does not pay a dividend. SkyWest pays out 11.7% of its earnings in the form of a dividend. SkyWest has increased its dividend for 2 consecutive years.

Valuation and Earnings

This table compares Great Lakes Aviation and SkyWest’s top-line revenue, earnings per share (EPS) 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
SkyWest $3.20 billion 0.92 $428.90 million $3.43 16.61

SkyWest has higher revenue and earnings than Great Lakes Aviation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Great Lakes Aviation and SkyWest, 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
SkyWest 0 2 3 1 2.83

SkyWest has a consensus target price of $66.00, indicating a potential upside of 15.74%. Given SkyWest’s higher possible upside, analysts clearly believe SkyWest is more favorable than Great Lakes Aviation.

Profitability

This table compares Great Lakes Aviation and SkyWest’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
SkyWest 15.65% 13.99% 4.43%

Summary

SkyWest beats Great Lakes Aviation on 10 of the 13 factors compared between the two stocks.

Great Lakes Aviation Company Profile

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.

SkyWest Company Profile

SkyWest, Inc. is the holding company for two scheduled passenger airline operations and an aircraft leasing company. SkyWest’s airline companies provide commercial air service in cities throughout North America with nearly 3,000 daily flights carrying more than 53 million passengers annually. SkyWest Airlines operates through partnerships with United Airlines, Delta Air Lines, American Airlines and Alaska Airlines. ExpressJet Airlines operates through partnerships with United Airlines, Delta Air Lines and American Airlines. Based in St. George, Utah, SkyWest employs nearly 17,000 employees.

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