US Airways Group (NYSE: LCC) and Alaska Air Group (NYSE:ALK) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.

Profitability

This table compares US Airways Group and Alaska Air Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
US Airways Group N/A N/A N/A
Alaska Air Group 11.02% 30.04% 9.14%

Valuation & Earnings

This table compares US Airways Group and Alaska Air Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
US Airways Group N/A N/A N/A N/A N/A
Alaska Air Group $6.94 billion 1.33 $1.84 billion $6.16 12.13

Alaska Air Group has higher revenue and earnings than US Airways Group.

Analyst Ratings

This is a breakdown of recent recommendations for US Airways Group and Alaska Air Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
US Airways Group 0 0 0 0 N/A
Alaska Air Group 0 2 7 0 2.78

Alaska Air Group has a consensus price target of $105.00, suggesting a potential upside of 40.47%. Given Alaska Air Group’s higher probable upside, analysts clearly believe Alaska Air Group is more favorable than US Airways Group.

Dividends

Alaska Air Group pays an annual dividend of $1.20 per share and has a dividend yield of 1.6%. US Airways Group does not pay a dividend. Alaska Air Group pays out 19.5% of its earnings in the form of a dividend. Alaska Air Group has increased its dividend for 3 consecutive years.

Insider and Institutional Ownership

87.8% of Alaska Air Group shares are owned by institutional investors. 0.6% of Alaska Air Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Alaska Air Group beats US Airways Group on 10 of the 11 factors compared between the two stocks.

US Airways Group Company Profile

US Airways Group, Inc. (US Airways Group) is a holding company whose primary business activity is the operation of a network air carrier through its wholly owned subsidiaries US Airways, Piedmont Airlines, Inc. (Piedmont), PSA Airlines, Inc. (PSA), Material Services Company, Inc. (MSC) and Airways Assurance Limited (AAL). MSC and AAL operate in support of its airline subsidiaries in areas, such as the procurement of aviation fuel and insurance. Effective December 9, 2013, AMR Corp merged with US Airways Group Inc.

Alaska Air Group Company Profile

Alaska Air Group, Inc. is the holding company of Alaska Airlines (Alaska), Virgin America Inc., Horizon Air (Horizon) and other business units. The Company operates through three segments: Mainline, Regional and Horizon. Its Mainline segment includes Alaska’s and Virgin America’s scheduled air transportation for passengers and cargo throughout the United States, and in parts of Canada, Mexico, Costa Rica and Cuba. Its Regional segment includes Horizon’s and other third-party carriers’ scheduled air transportation for passengers across a shorter distance network within the United States under capacity purchased arrangements (CPAs). Its Horizon segment includes the capacity sold to Alaska under CPA. Alaska and Virgin America operate fleets of narrowbody passenger jets. As of December 31, 2016, it maintained two frequent flyer plans: the Alaska Airlines Mileage Plan and the Virgin America Elevate.

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