Airlines, Airports & Air Services
Compare Stocks
2 / 10Stock Comparison
VLRS vs ULCC
Revenue, margins, valuation, and 5-year total return — side by side.
Airlines, Airports & Air Services
VLRS vs ULCC — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Airlines, Airports & Air Services | Airlines, Airports & Air Services |
| Market Cap | $902M | $1.10B |
| Revenue (TTM) | $3.04B | $3.80B |
| Net Income (TTM) | $-104M | $-366M |
| Gross Margin | 11.8% | 31.2% |
| Operating Margin | 4.5% | -10.1% |
| Total Debt | $3.86B | $5.46B |
| Cash & Equiv. | $754M | $671M |
VLRS vs ULCC — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | Apr 21 | May 26 | Return |
|---|---|---|---|
| Controladora Vuela … (VLRS) | 100 | 48.2 | -51.8% |
| Frontier Group Hold… (ULCC) | 100 | 22.7 | -77.3% |
Price return only. Dividends and distributions are not included.
Quick Verdict: VLRS vs ULCC
Each card shows where this stock fits in a portfolio — not just who wins on paper.
VLRS carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- beta 1.64
- -61.3% 10Y total return vs ULCC's -74.6%
- Lower volatility, beta 1.64, current ratio 0.73x
ULCC is the clearest fit if your priority is growth exposure.
- Rev growth -1.4%, EPS growth -257.9%, 3Y rev CAGR 3.8%
- -1.4% revenue growth vs VLRS's -3.3%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | -1.4% revenue growth vs VLRS's -3.3% | |
| Quality / Margins | -3.4% margin vs ULCC's -9.6% | |
| Stability / Safety | Beta 1.64 vs ULCC's 2.84 | |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | +91.9% vs ULCC's +39.4% | |
| Efficiency (ROA) | -1.8% ROA vs ULCC's -5.3%, ROIC 3.0% vs -2.3% |
VLRS vs ULCC — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
VLRS vs ULCC — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
VLRS leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
ULCC and VLRS operate at a comparable scale, with $3.8B and $3.0B in trailing revenue. VLRS is the more profitable business, keeping -3.4% of every revenue dollar as net income compared to ULCC's -9.6%. On growth, ULCC holds the edge at +8.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $3.0B | $3.8B |
| EBITDAEarnings before interest/tax | $642M | -$253M |
| Net IncomeAfter-tax profit | -$104M | -$366M |
| Free Cash FlowCash after capex | $388M | -$509M |
| Gross MarginGross profit ÷ Revenue | +11.8% | +31.2% |
| Operating MarginEBIT ÷ Revenue | +4.5% | -10.1% |
| Net MarginNet income ÷ Revenue | -3.4% | -9.6% |
| FCF MarginFCF ÷ Revenue | +12.8% | -13.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +5.6% | +8.8% |
| EPS Growth (YoY)Latest quarter vs prior year | -91.0% | -5.2% |
Valuation Metrics
ULCC leads this category, winning 2 of 3 comparable metrics.
Valuation Metrics
| Metric | ||
|---|---|---|
| Market CapShares × price | $902M | $1.1B |
| Enterprise ValueMkt cap + debt − cash | $4.0B | $5.9B |
| Trailing P/EPrice ÷ TTM EPS | -8.72x | -7.97x |
| Forward P/EPrice ÷ next-FY EPS est. | — | — |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 5.06x | — |
| Price / SalesMarket cap ÷ Revenue | 0.30x | 0.29x |
| Price / BookPrice ÷ Book value/share | 3.43x | 2.24x |
| Price / FCFMarket cap ÷ FCF | 1.20x | — |
Profitability & Efficiency
VLRS leads this category, winning 8 of 9 comparable metrics.
Profitability & Efficiency
VLRS delivers a -38.0% return on equity — every $100 of shareholder capital generates $-38 in annual profit, vs $-89 for ULCC. ULCC carries lower financial leverage with a 11.13x debt-to-equity ratio, signaling a more conservative balance sheet compared to VLRS's 14.66x. On the Piotroski fundamental quality scale (0–9), VLRS scores 3/9 vs ULCC's 0/9, reflecting mixed financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | -38.0% | -88.6% |
| ROA (TTM)Return on assets | -1.8% | -5.3% |
| ROICReturn on invested capital | +3.0% | -2.3% |
| ROCEReturn on capital employed | +3.5% | -3.2% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 0 |
| Debt / EquityFinancial leverage | 14.66x | 11.13x |
| Net DebtTotal debt minus cash | $3.1B | $4.8B |
| Cash & Equiv.Liquid assets | $754M | $671M |
| Total DebtShort + long-term debt | $3.9B | $5.5B |
| Interest CoverageEBIT ÷ Interest expense | 0.50x | -40.00x |
Total Returns (Dividends Reinvested)
VLRS leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in VLRS five years ago would be worth $4,559 today (with dividends reinvested), compared to $2,385 for ULCC. Over the past 12 months, VLRS leads with a +91.9% total return vs ULCC's +39.4%. The 3-year compound annual growth rate (CAGR) favors VLRS at -13.1% vs ULCC's -16.1% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -14.1% | +4.6% |
| 1-Year ReturnPast 12 months | +91.9% | +39.4% |
| 3-Year ReturnCumulative with dividends | -34.4% | -41.0% |
| 5-Year ReturnCumulative with dividends | -54.4% | -76.1% |
| 10-Year ReturnCumulative with dividends | -61.3% | -74.6% |
| CAGR (3Y)Annualised 3-year return | -13.1% | -16.1% |
Risk & Volatility
VLRS leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
VLRS is the less volatile stock with a 1.64 beta — it tends to amplify market swings less than ULCC's 2.84 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.64x | 2.84x |
| 52-Week HighHighest price in past year | $10.80 | $6.66 |
| 52-Week LowLowest price in past year | $3.90 | $3.02 |
| % of 52W HighCurrent price vs 52-week peak | +72.7% | +71.8% |
| RSI (14)Momentum oscillator 0–100 | 49.4 | 59.2 |
| Avg Volume (50D)Average daily shares traded | 790K | 5.6M |
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates VLRS as "Buy" and ULCC as "Hold". Consensus price targets imply 45.6% upside for VLRS (target: $11) vs 39.5% for ULCC (target: $7).
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $11.43 | $6.67 |
| # AnalystsCovering analysts | 17 | 13 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | 0 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
VLRS leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). ULCC leads in 1 (Valuation Metrics).
VLRS vs ULCC: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is VLRS or ULCC a better buy right now?
For growth investors, Frontier Group Holdings, Inc.
(ULCC) is the stronger pick with -1. 4% revenue growth year-over-year, versus -3. 3% for Controladora Vuela Compañía de Aviación, S. A. B. de C. V. (VLRS). Analysts rate Controladora Vuela Compañía de Aviación, S. A. B. de C. V. (VLRS) a "Buy" — based on 17 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — VLRS or ULCC?
Over the past 5 years, Controladora Vuela Compañía de Aviación, S.
A. B. de C. V. (VLRS) delivered a total return of -54. 4%, compared to -76. 1% for Frontier Group Holdings, Inc. (ULCC). Over 10 years, the gap is even starker: VLRS returned -61. 3% versus ULCC's -74. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — VLRS or ULCC?
By beta (market sensitivity over 5 years), Controladora Vuela Compañía de Aviación, S.
A. B. de C. V. (VLRS) is the lower-risk stock at 1. 64β versus Frontier Group Holdings, Inc. 's 2. 84β — meaning ULCC is approximately 74% more volatile than VLRS relative to the S&P 500. On balance sheet safety, Frontier Group Holdings, Inc. (ULCC) carries a lower debt/equity ratio of 11% versus 15% for Controladora Vuela Compañía de Aviación, S. A. B. de C. V. — giving it more financial flexibility in a downturn.
04Which is growing faster — VLRS or ULCC?
By revenue growth (latest reported year), Frontier Group Holdings, Inc.
(ULCC) is pulling ahead at -1. 4% versus -3. 3% for Controladora Vuela Compañía de Aviación, S. A. B. de C. V. (VLRS). On earnings-per-share growth, the picture is similar: Controladora Vuela Compañía de Aviación, S. A. B. de C. V. grew EPS -181. 8% year-over-year, compared to -257. 9% for Frontier Group Holdings, Inc.. Over a 3-year CAGR, ULCC leads at 3. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
05Which has better profit margins — VLRS or ULCC?
Controladora Vuela Compañía de Aviación, S.
A. B. de C. V. (VLRS) is the more profitable company, earning -3. 4% net margin versus -3. 7% for Frontier Group Holdings, Inc. — meaning it keeps -3. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: VLRS leads at 4. 4% versus -4. 0% for ULCC. At the gross margin level — before operating expenses — ULCC leads at 35. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Which pays a better dividend — VLRS or ULCC?
None of the stocks in this comparison currently pay a material dividend.
All are effectively zero-yield and should be held for capital appreciation rather than income.
07Is VLRS or ULCC better for a retirement portfolio?
For long-horizon retirement investors, Controladora Vuela Compañía de Aviación, S.
A. B. de C. V. (VLRS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Frontier Group Holdings, Inc. (ULCC) carries a higher beta of 2. 84 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (VLRS: -61. 3%, ULCC: -74. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
08What are the main differences between VLRS and ULCC?
Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that outperform both.
You Might Also Compare
Based on how these companies actually compete and overlap — not just which sector they're filed under.