Comparing Copa Holdings, (CPA) and LATAM Airlines Group (LTM)
Copa Holdings, (NYSE: CPA) and LATAM Airlines Group (NYSE:LTM) are both mid-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
Earnings and Valuation
This table compares Copa Holdings, and LATAM Airlines Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Copa Holdings,||$2.37 billion||2.27||$518.91 million||$7.91||16.07|
|LATAM Airlines Group||$9.29 billion||0.83||$1.41 billion||($0.01)||-1,276.72|
LATAM Airlines Group has higher revenue and earnings than Copa Holdings,. LATAM Airlines Group is trading at a lower price-to-earnings ratio than Copa Holdings,, indicating that it is currently the more affordable of the two stocks.
This table compares Copa Holdings, and LATAM Airlines Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|LATAM Airlines Group||-0.14%||-0.16%||-0.03%|
Risk & Volatility
Copa Holdings, has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500. Comparatively, LATAM Airlines Group has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.
Insider and Institutional Ownership
64.3% of Copa Holdings, shares are owned by institutional investors. Comparatively, 3.2% of LATAM Airlines Group shares are owned by institutional investors. 7.8% of LATAM Airlines Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Copa Holdings, pays an annual dividend of $3.00 per share and has a dividend yield of 2.4%. LATAM Airlines Group pays an annual dividend of $0.02 per share and has a dividend yield of 0.2%. Copa Holdings, pays out 37.9% of its earnings in the form of a dividend. LATAM Airlines Group pays out -199.8% 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.
This is a summary of current recommendations for Copa Holdings, and LATAM Airlines Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|LATAM Airlines Group||1||5||1||0||2.00|
Copa Holdings, presently has a consensus target price of $108.80, suggesting a potential downside of 14.38%. LATAM Airlines Group has a consensus target price of $10.20, suggesting a potential downside of 20.19%. Given Copa Holdings,’s stronger consensus rating and higher probable upside, research analysts clearly believe Copa Holdings, is more favorable than LATAM Airlines Group.
Copa Holdings, beats LATAM Airlines Group on 11 of the 15 factors compared between the two stocks.
About Copa Holdings,
Copa Holdings, S.A. is a provider of airline passenger and cargo service through its principal operating subsidiaries, Compania Panamena de Aviacion, S. A. (Copa Airlines) and AeroRepublica, S. A. (Copa Colombia). The Company operates through air transportation segment. Copa Airlines operates from its position located in the Republic of Panama. Copa Airlines provides international air transportation for passengers, cargo and mail, operating from its Panama City hub in the Republic of Panama. Copa Colombia provides service within Colombia and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mexico, Cuba, Guatemala and Costa Rica. Copa Colombia provides domestic and international air transportation for passengers, cargo and mail with a point-to-point route network. Its subsidiary, Oval Financial Leasing, Ltd., controls the special purpose entities that have a beneficial interest in the majority of its fleet.
About LATAM Airlines Group
LATAM Airlines Group S.A. is a Chile-based company, which is engaged in passenger and cargo air transportation, both in the domestic markets of Chile, Peru, Argentina, Colombia, Ecuador and Brazil and in a developed series of regional and international routes in America, Europe and Oceania. These businesses are performed directly or through its subsidiaries in different countries. It operates through two segments: the air transportation business, and the coalition and loyalty program Multiplus. It Air transport segment corresponds to the route network for air transport. Its segment of loyalty coalition called Multiplus is a frequent flyer programs, which operate as a unilateral system of loyalty that offers a flexible coalition system. As of December 31, 2016, the Company operated a fleet of over 329 aircraft. Its passenger aircraft include Airbus A319-100, Airbus A350-900, Boeing 767-300ER, Boeing 787-8, Boeing 787-9 and Boeing 777-300ER.
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