Hawaiian (NASDAQ:HA) and American Airlines Group (NASDAQ:AAL) are both transportation companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.
Profitability
This table compares Hawaiian and American Airlines Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Hawaiian | -21.28% | -37.81% | -8.20% |
American Airlines Group | -25.56% | N/A | -11.06% |
Volatility & Risk
Hawaiian has a beta of 2.36, suggesting that its stock price is 136% more volatile than the S&P 500. Comparatively, American Airlines Group has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.
Valuation and Earnings
This table compares Hawaiian and American Airlines Group's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Hawaiian | $2.83 billion | 0.46 | $223.98 million | $4.60 | 5.83 |
American Airlines Group | $45.77 billion | 0.29 | $1.69 billion | $4.90 | 4.27 |
American Airlines Group has higher revenue and earnings than Hawaiian. American Airlines Group is trading at a lower price-to-earnings ratio than Hawaiian, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for Hawaiian and American Airlines Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Hawaiian | 3 | 3 | 2 | 0 | 1.88 |
American Airlines Group | 11 | 7 | 1 | 0 | 1.47 |
Hawaiian currently has a consensus target price of $17.1429, suggesting a potential downside of 36.08%. American Airlines Group has a consensus target price of $14.60, suggesting a potential downside of 30.28%. Given American Airlines Group's higher possible upside, analysts plainly believe American Airlines Group is more favorable than Hawaiian.
Insider and Institutional Ownership
78.7% of Hawaiian shares are owned by institutional investors. Comparatively, 44.4% of American Airlines Group shares are owned by institutional investors. 2.0% of Hawaiian shares are owned by insiders. Comparatively, 1.0% of American Airlines Group shares are owned by 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.
Summary
Hawaiian beats American Airlines Group on 8 of the 14 factors compared between the two stocks.