American Airlines Group (NASDAQ: AAL) is one of 24 publicly-traded companies in the “Air transportation, scheduled” industry, but how does it compare to its competitors? We will compare American Airlines Group to similar businesses based on the strength of its profitability, earnings, dividends, institutional ownership, valuation, analyst recommendations and risk.
Earnings & Valuation
This table compares American Airlines Group and its competitors revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|American Airlines Group||$42.21 billion||$1.92 billion||9.40|
|American Airlines Group Competitors||$15.00 billion||$1.00 billion||9.91|
Volatility & Risk
American Airlines Group has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, American Airlines Group’s competitors have a beta of 1.16, suggesting that their average stock price is 16% more volatile than the S&P 500.
American Airlines Group pays an annual dividend of $0.40 per share and has a dividend yield of 0.9%. American Airlines Group pays out 8.2% of its earnings in the form of a dividend. As a group, “Air transportation, scheduled” companies pay a dividend yield of 1.7% and pay out 20.6% of their earnings in the form of a dividend.
This table compares American Airlines Group and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Airlines Group||4.55%||63.78%||4.57%|
|American Airlines Group Competitors||8.44%||24.16%||5.96%|
Institutional and Insider Ownership
80.6% of American Airlines Group shares are held by institutional investors. Comparatively, 79.4% of shares of all “Air transportation, scheduled” companies are held by institutional investors. 0.6% of American Airlines Group shares are held by insiders. Comparatively, 3.7% of shares of all “Air transportation, scheduled” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and recommmendations for American Airlines Group and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Airlines Group||1||3||11||0||2.67|
|American Airlines Group Competitors||316||1137||1719||143||2.51|
American Airlines Group currently has a consensus target price of $62.13, indicating a potential upside of 35.46%. As a group, “Air transportation, scheduled” companies have a potential upside of 13.08%. Given American Airlines Group’s stronger consensus rating and higher possible upside, research analysts plainly believe American Airlines Group is more favorable than its competitors.
American Airlines Group beats its competitors on 8 of the 15 factors compared.
American Airlines Group Company Profile
American Airlines Group Inc. is a holding company. The Company’s primary business activity is the operation of a network air carrier, providing scheduled air transportation for passengers and cargo. The Company operates through American segment, which provides air transportation for passengers and cargo. The Company’s cargo division provides a range of freight and mail services with facilities and interline connections available across the globe. Together with its regional airline subsidiaries and third-party regional carriers operating as American Eagle, its airline operated an average of nearly 6,700 flights per day to nearly 350 destinations in more than 50 countries, principally from its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, District of Columbia, as of December 31, 2016. In the fiscal year ended December 31, 2016, approximately 199 million passengers boarded its mainline and regional flights.
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