American Airlines Group (NASDAQ:AAL – Get Free Report) and Saker Aviation Services (OTCMKTS:SKAS – Get Free Report) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.
Insider and Institutional Ownership
52.4% of American Airlines Group shares are held by institutional investors. Comparatively, 37.3% of Saker Aviation Services shares are held by institutional investors. 0.6% of American Airlines Group shares are held by insiders. Comparatively, 34.6% of Saker Aviation Services 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.
Profitability
This table compares American Airlines Group and Saker Aviation Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Airlines Group | 1.11% | -18.14% | 1.18% |
| Saker Aviation Services | 6.08% | 3.44% | 3.15% |
Volatility and Risk
Analyst Recommendations
This is a breakdown of current ratings and price targets for American Airlines Group and Saker Aviation Services, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Airlines Group | 2 | 7 | 9 | 2 | 2.55 |
| Saker Aviation Services | 0 | 0 | 0 | 0 | 0.00 |
American Airlines Group presently has a consensus target price of $16.65, suggesting a potential upside of 16.90%. Given American Airlines Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe American Airlines Group is more favorable than Saker Aviation Services.
Earnings & Valuation
This table compares American Airlines Group and Saker Aviation Services”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Airlines Group | $54.21 billion | 0.17 | $846.00 million | $0.86 | 16.56 |
| Saker Aviation Services | $9.17 million | 0.74 | $1.25 million | ($0.42) | -16.19 |
American Airlines Group has higher revenue and earnings than Saker Aviation Services. Saker Aviation Services is trading at a lower price-to-earnings ratio than American Airlines Group, indicating that it is currently the more affordable of the two stocks.
Summary
American Airlines Group beats Saker Aviation Services on 9 of the 15 factors compared between the two stocks.
About American Airlines Group
American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. The company provides scheduled air transportation services for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C., as well as through partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo. It operates a mainline fleet of 965 aircraft. The company was formerly known as AMR Corporation and changed its name to American Airlines Group Inc. in December 2013. American Airlines Group Inc. was founded in 1926 and is headquartered in Fort Worth, Texas.
About Saker Aviation Services
Saker Aviation Services, Inc., through its subsidiaries, operates in the aviation services segment of the general aviation industry in the United States. It serves as the operator of a Downtown Manhattan (New York) Heliport. The company was formerly known as FirstFlight, Inc. and changed its name to Saker Aviation Services, Inc. in September 2009. Saker Aviation Services, Inc. is headquartered in New York, New York.
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