Reviewing China Eastern Airlines (OTCMKTS:CHEAF) & Controladora Vuela Compania de Aviacion (NYSE:VLRS)

Controladora Vuela Compania de Aviacion (NYSE:VLRS) and China Eastern Airlines (OTCMKTS:CHEAF) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Profitability

This table compares Controladora Vuela Compania de Aviacion and China Eastern Airlines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Controladora Vuela Compania de Aviacion	-5.71%	-93.91%	-3.29%
China Eastern Airlines	N/A	N/A	N/A

Insider & 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Controladora Vuela Compania de Aviacion and China Eastern Airlines, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Controladora Vuela Compania de Aviacion	2	5	3	0	2.10
China Eastern Airlines	0	0	0	0	0.00

Controladora Vuela Compania de Aviacion currently has a consensus price target of $9.21, suggesting a potential upside of 17.55%. Given Controladora Vuela Compania de Aviacion’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Controladora Vuela Compania de Aviacion is more favorable than China Eastern Airlines.

Earnings & Valuation

This table compares Controladora Vuela Compania de Aviacion and China Eastern Airlines”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Controladora Vuela Compania de Aviacion	$3.04 billion	0.30	-$103.87 million	($1.64)	-4.78
China Eastern Airlines	N/A	N/A	N/A	N/A	N/A

China Eastern Airlines has lower revenue, but higher earnings than Controladora Vuela Compania de Aviacion.

Summary

Controladora Vuela Compania de Aviacion beats China Eastern Airlines on 6 of the 9 factors compared between the two stocks.

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.

About China Eastern Airlines

China Eastern Airlines Corporation Limited, together with its subsidiaries, operates in the civil aviation industry in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally. The company offers passenger, cargo, mail delivery, ground, tour operations, air catering, and other miscellaneous services. It is also involved in flight training; airline maintenance; the provision of import and export, investment, leasing, and consultation; business aviation; e-commerce platform and ticket agent; and property management services, as well as the research and development of technology and products in the field of aviation; and sale of goods. As of December 31, 2022, the company operated a fleet of 778 aircraft, including 775 passenger aircraft and 3 business aircraft. China Eastern Airlines Corporation Limited was founded in 1957 and is headquartered in Shanghai, the People’s Republic of China.