American Airlines Group (NASDAQ:AAL) and International Consolidated Airlines Group (OTCMKTS:ICAGY) are both transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for American Airlines Group and International Consolidated Airlines Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| American Airlines Group | 8 | 7 | 1 | 0 | 1.56 |
| International Consolidated Airlines Group | 2 | 4 | 11 | 0 | 2.53 |
American Airlines Group currently has a consensus target price of $15.5714, suggesting a potential downside of 33.85%. Given American Airlines Group's higher possible upside, analysts plainly believe American Airlines Group is more favorable than International Consolidated Airlines Group.
Profitability
This table compares American Airlines Group and International Consolidated Airlines Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| American Airlines Group | -25.56% | N/A | -11.06% |
| International Consolidated Airlines Group | -45.00% | -103.79% | -11.74% |
Volatility & Risk
American Airlines Group has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500. Comparatively, International Consolidated Airlines Group has a beta of 2.39, suggesting that its stock price is 139% more volatile than the S&P 500.
Institutional & Insider Ownership
44.4% of American Airlines Group shares are owned by institutional investors. Comparatively, 0.1% of International Consolidated Airlines Group shares are owned by institutional investors. 1.0% of American Airlines Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares American Airlines Group and International Consolidated Airlines Group's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| American Airlines Group | $45.77 billion | 0.33 | $1.69 billion | $4.90 | 4.80 |
| International Consolidated Airlines Group | $28.57 billion | 0.20 | $1.92 billion | $6.54 | 0.90 |
International Consolidated Airlines Group has lower revenue, but higher earnings than American Airlines Group. International Consolidated Airlines Group 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.
Summary
American Airlines Group beats International Consolidated Airlines Group on 8 of the 14 factors compared between the two stocks.
