Ryanair (NASDAQ:RYAAY) and LATAM Airlines Group (OTCMKTS:LTMAY) Head to Head Survey

Ryanair (NASDAQ:RYAAYGet Rating) and LATAM Airlines Group (OTCMKTS:LTMAYGet Rating) are both large-cap transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Ryanair and LATAM Airlines Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ryanair 0 1 5 1 3.00
LATAM Airlines Group 0 1 0 0 2.00

Ryanair presently has a consensus target price of $46.50, indicating a potential downside of 56.72%. Given Ryanair’s stronger consensus rating and higher possible upside, analysts plainly believe Ryanair is more favorable than LATAM Airlines Group.

Insider & Institutional Ownership

42.8% of Ryanair shares are owned by institutional investors. 7.8% of LATAM Airlines Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Ryanair and LATAM Airlines Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ryanair 11.90% 22.51% 8.49%
LATAM Airlines Group 18.02% -45.94% 13.64%

Risk and Volatility

Ryanair has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, LATAM Airlines Group has a beta of 3.24, meaning that its share price is 224% more volatile than the S&P 500.

Earnings and Valuation

This table compares Ryanair and LATAM Airlines Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ryanair $11.23 billion 2.18 $1.37 billion $5.84 18.40
LATAM Airlines Group $9.36 billion 24.56 $1.34 billion N/A N/A

Ryanair has higher revenue and earnings than LATAM Airlines Group.

Summary

Ryanair beats LATAM Airlines Group on 8 of the 13 factors compared between the two stocks.

About Ryanair

(Get Rating)

Ryanair Holdings Plc engages in the provision of low fares airline-related services. It also offers ancillary, core air passenger, non-flight scheduled, and internet-related services. It also involved in in-flight sale of beverages, food, and merchandise. It operates through the following segments: Ryanair DAC, Malta Air, and Other Airlines. Ryanair U.K. The company was founded on June 5, 1996 and is headquartered in Dublin, Ireland.

About LATAM Airlines Group

(Get Rating)

LATAM Airlines Group SA is holding company, which engages in the provision of passenger air transportation and cargo services. The Air Transportation segment corresponds to the route network for air transport. The Multiplus Coalition and Loyalty Program segment offers a coalition system, interrelated among its members, along with being a government entity with a separately business and not directly related to air transport. The company was founded in 1929 and is headquartered in Las Condes, Chile.

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Article source: https://airlines.einnews.com/article/638734306/AHe4NcV2_blr435C?ref=rss&ecode=vaZAu9rk30b8KC5H

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