Allegiant Travel (ALGT) Competitors

Allegiant Travel (NASDAQ:ALGT) and American Airlines Group (NASDAQ:AAL) are both transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation, earnings and media sentiment.

Is ALGT or AAL a better dividend stock?

Allegiant Travel pays an annual dividend of $2.40 per share and has a dividend yield of 3.9%. American Airlines Group pays an annual dividend of $0.40 per share and has a dividend yield of 3.1%. Allegiant Travel pays out -15.1% of its earnings in the form of a dividend. American Airlines Group pays out 50.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Allegiant Travel is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the media refer more to ALGT or AAL?

In the previous week, American Airlines Group had 2 more articles in the media than Allegiant Travel. MarketBeat recorded 19 mentions for American Airlines Group and 17 mentions for Allegiant Travel. American Airlines Group's average media sentiment score of 1.14 beat Allegiant Travel's score of 0.45 indicating that American Airlines Group is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Allegiant Travel	4 Very Positive mention(s)	3 Positive mention(s)	5 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral
American Airlines Group	11 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Is ALGT or AAL more profitable?

American Airlines Group has a net margin of 1.05% compared to Allegiant Travel's net margin of -11.10%. Allegiant Travel's return on equity of 5.00% beat American Airlines Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Allegiant Travel	-11.10%	5.00%	1.26%
American Airlines Group	1.05%	-24.55%	1.68%

Which has preferable earnings & valuation, ALGT or AAL?

American Airlines Group has higher revenue and earnings than Allegiant Travel. Allegiant Travel is trading at a lower price-to-earnings ratio than American Airlines Group, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allegiant Travel	$2.58B	0.44	-$240.24M	-$15.94	-3.85
American Airlines Group	$54.25B	0.16	$846M	$0.80	16.39

Which has more volatility & risk, ALGT or AAL?

Allegiant Travel has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, American Airlines Group has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.

Do analysts recommend ALGT or AAL?

Allegiant Travel presently has a consensus price target of $64.33, suggesting a potential upside of 4.93%. American Airlines Group has a consensus price target of $16.76, suggesting a potential upside of 27.87%. Given American Airlines Group's stronger consensus rating and higher probable upside, analysts clearly believe American Airlines Group is more favorable than Allegiant Travel.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegiant Travel	1 Sell rating(s)	7 Hold rating(s)	1 Buy rating(s)	1 Strong Buy rating(s)	2.20
American Airlines Group	1 Sell rating(s)	7 Hold rating(s)	9 Buy rating(s)	2 Strong Buy rating(s)	2.63

Do institutionals and insiders hold more shares of ALGT or AAL?

85.8% of Allegiant Travel shares are held by institutional investors. Comparatively, 52.4% of American Airlines Group shares are held by institutional investors. 14.7% of Allegiant Travel shares are held by insiders. Comparatively, 0.6% of American Airlines Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

American Airlines Group beats Allegiant Travel on 12 of the 19 factors compared between the two stocks.