Exchange Income (OTCMKTS:EIFZF) versus SkyWest (NASDAQ:SKYW) Financial Comparison

SkyWest (NASDAQ:SKYW) and Exchange Income (OTCMKTS:EIFZF) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

81.3% of SkyWest shares are held by institutional investors. Comparatively, 14.2% of Exchange Income shares are held by institutional investors. 1.5% of SkyWest shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for SkyWest and Exchange Income, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SkyWest	0	4	1	1	2.50
Exchange Income	0	0	4	1	3.20

SkyWest currently has a consensus target price of $119.40, suggesting a potential upside of 15.80%. Given SkyWest’s higher probable upside, equities research analysts plainly believe SkyWest is more favorable than Exchange Income.

Earnings & Valuation

This table compares SkyWest and Exchange Income”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SkyWest	$4.19 billion	0.96	$428.33 million	$10.06	10.25
Exchange Income	N/A	N/A	N/A	$0.53	177.86

SkyWest has higher revenue and earnings than Exchange Income. SkyWest is trading at a lower price-to-earnings ratio than Exchange Income, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SkyWest and Exchange Income’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SkyWest	9.78%	14.58%	5.42%
Exchange Income	N/A	N/A	N/A

Dividends

SkyWest pays an annual dividend of $0.56 per share and has a dividend yield of 0.5%. Exchange Income pays an annual dividend of $1.68 per share and has a dividend yield of 1.8%. SkyWest pays out 5.6% of its earnings in the form of a dividend. Exchange Income pays out 317.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

SkyWest beats Exchange Income on 9 of the 13 factors compared between the two stocks.

About SkyWest

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.

About Exchange Income

Exchange Income Corporation, together with its subsidiaries, engages in aerospace and aviation services and equipment, and manufacturing businesses worldwide. The company Aerospace & Aviation, and Manufacturing segments. The Aerospace & Aviation segment offers fixed wing and rotary wing, medevac, passenger, charter, freight, and auxiliary services; and operates two flight schools and trains pilots. This segment provides mission systems design, integration, aircraft modifications, intelligence, surveillance, reconnaissance operations, software development, logistics and in-service support services, as well as engages in engine parts sales, aircraft, and engine leasing; and aircraft management services in Canada, Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Nunavut, Ontario, and Quebec. The Manufacturing segment provides planning, consultation, delivery, installation, logistical support, removal and washing solutions; and temporary access solutions, as well as involved in selling of mats and rental businesses. It also engages in design, manufacture, and installation of exteriors for residential, retail, and office spaces; and provides window wall system, curtain wall, and railing solutions. This segment manufactures precision parts, components; portable hydronic climate control equipment; stainless steel tanks, vessels, and processing equipment; electrical and control systems, as well as offers wireless and wireline construction and maintenance services. Exchange Income Corporation was incorporated in 2002 and is headquartered in Winnipeg, Canada.