Virgin America (NASDAQ: VA) and China Southern Airlines (NYSE:ZNH) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Earnings & Valuation

This table compares Virgin America and China Southern Airlines’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Virgin America N/A N/A N/A $6.68 8.53
China Southern Airlines $17.31 billion 0.50 $759.12 million N/A N/A

China Southern Airlines has higher revenue and earnings than Virgin America.

Analyst Recommendations

This is a summary of recent ratings for Virgin America and China Southern Airlines, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Virgin America 1 0 0 0 1.00
China Southern Airlines 1 0 0 0 1.00

Virgin America currently has a consensus target price of $57.00, indicating a potential upside of 0.00%. Given Virgin America’s higher possible upside, analysts plainly believe Virgin America is more favorable than China Southern Airlines.

Dividends

China Southern Airlines pays an annual dividend of $0.64 per share and has a dividend yield of 1.5%. Virgin America does not pay a dividend. China Southern Airlines has increased its dividend for 2 consecutive years.

Insider and Institutional Ownership

65.6% of Virgin America shares are owned by institutional investors. Comparatively, 0.5% of China Southern Airlines shares are owned by institutional investors. 31.2% of Virgin America shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Virgin America and China Southern Airlines’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Virgin America 11.64% 22.78% 10.96%
China Southern Airlines N/A N/A N/A

Summary

Virgin America beats China Southern Airlines on 6 of the 9 factors compared between the two stocks.

About Virgin America

Virgin America Inc. is an airline that provides scheduled air travel in the United States and Mexico. The Company operates in air transportation service segment. The Company operates from Los Angeles and San Francisco with a presence at Dallas Love Field (DAL) to other destinations in North America. The Company provides service to over 20 airports in the United States and Mexico with a fleet of over 60 narrow-body aircraft. It offers three levels of service: First Class, Main Cabin Select and Main Cabin. The Company’s First Class level of service includes eight-seat cabin with an inflight teammate to provide service. Its Main Cabin Select includes approximately 40 inches of pitch for leg room. The Company’s Main Cabin includes approximately 30 inches of pitch and individual Red inflight entertainment system at every seatback. The Company maintains a guest loyalty program called the Elevate frequent flyer program.

About China Southern Airlines

China Southern Airlines Company Limited is principally engaged in the operation of civil aviation, including the provision of passenger, cargo, mail delivery and other extended transportation services. The Company operates through two business segments, including Airline Transportation segment and Other segment. Airline Transportation segment consist of passenger and cargo and mail operations. Other segment includes hotel and tour operation, ground services, cargo handling and other miscellaneous services. . The Company also provides services of general aviation and aircraft maintenance. The Company acts as an agency of domestic and foreign airlines, and other aviation and related business, such as personal accident insurance and agency business.

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