SkyWest, Inc. (SKYW) vs Frontier Group Holdings, Inc. (ULCC)

SkyWest, Inc. and Frontier Group Holdings, Inc. are both Airlines companies. SkyWest, Inc. is the larger, with a market value of $3.9B against $1.4B — 2.9× the size. Frontier Group Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; SkyWest, Inc. trades at 10.0×. Frontier Group Holdings, Inc. grew revenue faster over the last twelve months: 9.95% against 9.10%. SkyWest, Inc. has the higher net margin (9.78% vs −9.29%) and the higher return on invested capital (8.24% vs 0.00%). Across the 18 metrics below, SkyWest, Inc. leads on 12 and Frontier Group Holdings, Inc. on 6.

Valuation

Metric SKYW ULCC Airlines median
P/E 9.97 n/m 10.32
P/S 0.96 0.34 0.57
P/B 1.46 10.42 2.06
Price to free cash flow 12.32 n/m 13.20
EV/EBITDA 9.74 n/m 9.68
EV/Sales 1.37 0.25 0.89
Earnings yield 10.03% (27.27%) 2.85%
Free cash flow yield 8.11% (11.58%) 3.17%

Profitability

Metric SKYW ULCC Airlines median
Gross margin 70.05% 24.07% 42.57%
Operating margin 14.03% (9.82%) 4.18%
Net margin 9.78% (9.29%) 1.85%
Free cash flow margin 7.81% (3.95%) 4.31%
Return on equity 15.34% (120.25%) 10.75%
Return on assets 5.62% (5.61%) 1.67%
Return on invested capital 8.24% 0.00% 3.19%

Growth

Metric SKYW ULCC Airlines median
Revenue growth (TTM) 9.10% 9.95% 9.79%
EPS growth (last fiscal year) 33.20% (262.16%) —
Revenue growth, 5-year CAGR 13.79% 24.40% 25.83%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric SKYW ULCC Airlines median
Debt to equity 0.83 4.29 0.81
Current ratio 0.57 0.58 0.60
Net debt to EBITDA 1.72 0.23 1.42

Dividend

Metric SKYW ULCC Airlines median
Dividend yield 0.17% — 0.82%
Payout ratio 0.00 0.00 0.00

Size

Metric SKYW ULCC Airlines median
Market cap 3.91b 1.35b 3.91b

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