Cebu Air (OTCMKTS:CEBUY) & Controladora Vuela Compania de Aviacion (NYSE:VLRS) Financial Contrast

Cebu Air (OTCMKTS:CEBUY) and Controladora Vuela Compania de Aviacion (NYSE:VLRS) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

53.3% of Controladora Vuela Compania de Aviacion shares are held by institutional investors. 2.5% of Controladora Vuela Compania de Aviacion 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.

Profitability

This table compares Cebu Air and Controladora Vuela Compania de Aviacion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cebu Air	N/A	N/A	N/A
Controladora Vuela Compania de Aviacion	-5.71%	-93.91%	-3.29%

Valuation & Earnings

This table compares Cebu Air and Controladora Vuela Compania de Aviacion”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cebu Air	N/A	N/A	N/A	$15.90	0.16
Controladora Vuela Compania de Aviacion	$3.30 billion	0.28	-$103.87 million	($1.64)	-4.81

Cebu Air has higher earnings, but lower revenue than Controladora Vuela Compania de Aviacion. Controladora Vuela Compania de Aviacion is trading at a lower price-to-earnings ratio than Cebu Air, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for Cebu Air and Controladora Vuela Compania de Aviacion, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cebu Air	0	0	0	0	0.00
Controladora Vuela Compania de Aviacion	2	5	4	0	2.18

Controladora Vuela Compania de Aviacion has a consensus price target of $9.42, suggesting a potential upside of 19.42%. Given Controladora Vuela Compania de Aviacion’s stronger consensus rating and higher possible upside, analysts plainly believe Controladora Vuela Compania de Aviacion is more favorable than Cebu Air.

Summary

Controladora Vuela Compania de Aviacion beats Cebu Air on 6 of the 11 factors compared between the two stocks.

About Cebu Air

Cebu Air, Inc., an airline, provides international and domestic air transportation services. The company offers scheduled air travel services to passengers, as well as airport-to-airport cargo services on its domestic and international routes. It also provides ancillary services, such as cancellation and rebooking options; in-flight merchandising, including sale of duty-free products on international flights; baggage services; and travel-related products and services. In addition, the company offers line maintenance services comprising certification and mechanic assistance; technical ramp, equipment handling; water and toilet servicing; aircraft ground support equipment operation; and light maintenance aircraft checks services. As of December 31, 2023, it operated a fleet of 85 aircrafts. The company was incorporated in 1988 and is headquartered in Pasay City, the Philippines. Cebu Air, Inc. is a subsidiary of CP Air Holdings, Inc.

About Controladora Vuela Compania de Aviacion

Controladora Vuela Compañía de Aviación, S.A.B. de C.V., through its subsidiary, Concesionaria Vuela Compañía de Aviación, S.A.P.I. de C.V., provides air transportation services for passengers, cargo, and mail in Mexico and internationally. The company operates approximately 590 daily flights on routes connecting 43 cities in Mexico, 22 cities in the United States, 4 cities in Central America, and 2 cities in South America. As of December 31, 2022, it leased 116 aircrafts and 23 spare engines. The company also offers merchandising, travel agency, and loyalty program, as well as specialized and aeronautical technical services. Controladora Vuela Compañía de Aviación, S.A.B. de C.V. was incorporated in 2005 and is headquartered in Mexico City, Mexico.