Great Lakes Aviation (OTCMKTS:GLUX – Get Free Report) and Frontier Group (NASDAQ:ULCC – Get Free Report) are both transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.
Profitability
This table compares Great Lakes Aviation and Frontier 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 |
Frontier Group | 3.56% | 25.80% | 2.89% |
Institutional & Insider Ownership
99.2% of Frontier Group shares are held by institutional investors. 63.0% of Great Lakes Aviation shares are held by company insiders. Comparatively, 83.2% of Frontier Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
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 |
Frontier Group | $3.63 billion | 0.40 | -$37.00 million | $0.56 | 11.73 |
Great Lakes Aviation has higher earnings, but lower revenue than Frontier Group.
Risk and Volatility
Great Lakes Aviation has a beta of -0.45, meaning that its stock price is 145% less volatile than the S&P 500. Comparatively, Frontier Group has a beta of 2.02, meaning that its stock price is 102% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Great Lakes Aviation and Frontier Group, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Great Lakes Aviation | 0 | 0 | 0 | 0 | N/A |
Frontier Group | 0 | 3 | 6 | 0 | 2.67 |
Frontier Group has a consensus target price of $14.60, indicating a potential upside of 122.22%.
Summary
Frontier Group beats Great Lakes Aviation on 8 of the 8 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 Frontier Group
Frontier Group Holdings, Inc., a low-fare airline company, provides air transportation for passengers in United States and international destinations in the Americas. It offers its services through direct distribution channels, including its website, mobile app, and call center. Frontier Group Holdings, Inc. was incorporated in 2013 and is headquartered in Denver, Colorado.
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