Contrasting LATAM Airlines Group (LTMAQ) and Its Peers
LATAM Airlines Group (OTCMKTS: LTMAQ) is one of 28 public companies in the “Air transportation, scheduled” industry, but how does it contrast to its peers? We will compare LATAM Airlines Group to related companies based on the strength of its risk, institutional ownership, dividends, analyst recommendations, earnings, valuation and profitability.
This table compares LATAM Airlines Group and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|LATAM Airlines Group||-33.47%||-45.13%||-3.11%|
|LATAM Airlines Group Competitors||-11.65%||-37.42%||-1.45%|
0.1% of LATAM Airlines Group shares are owned by institutional investors. Comparatively, 59.2% of shares of all “Air transportation, scheduled” companies are owned by institutional investors. 7.8% of LATAM Airlines Group shares are owned by company insiders. Comparatively, 4.0% of shares of all “Air transportation, scheduled” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings for LATAM Airlines Group and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|LATAM Airlines Group||0||0||0||0||N/A|
|LATAM Airlines Group Competitors||765||1983||2519||201||2.39|
As a group, “Air transportation, scheduled” companies have a potential upside of 23.95%. Given LATAM Airlines Group’s peers higher possible upside, analysts clearly believe LATAM Airlines Group has less favorable growth aspects than its peers.
Earnings and Valuation
This table compares LATAM Airlines Group and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|LATAM Airlines Group||$10.07 billion||$190.43 million||5.00|
|LATAM Airlines Group Competitors||$14.90 billion||$744.27 million||7.08|
LATAM Airlines Group’s peers have higher revenue and earnings than LATAM Airlines Group. LATAM Airlines Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
LATAM Airlines Group pays an annual dividend of $0.09 per share and has a dividend yield of 5.8%. LATAM Airlines Group pays out 29.0% of its earnings in the form of a dividend. As a group, “Air transportation, scheduled” companies pay a dividend yield of 2.3% and pay out 13.3% of their earnings in the form of a dividend.
LATAM Airlines Group peers beat LATAM Airlines Group on 9 of the 11 factors compared.
About LATAM Airlines Group
LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Peru, Argentina, the United States, Europe, Colombia, Brazil, Ecuador, Chile, the Asia Pacific, and rest of Latin America. The company provides passenger transport services to approximately 145 destinations in 26 countries, as well as cargo services to approximately 151 destinations in 29 countries; and operates loyalty programs. As of December 31, 2019, it operated a fleet of 331 aircraft, which include 320 passenger aircraft and 11 cargo aircraft; and subleased 11 aircraft comprising 10 passenger aircraft and 1 cargo aircraft to third parties. The company was formerly known as LAN Airlines S.A. and changed its name to LATAM Airlines Group S.A. in June 2012. LATAM Airlines Group S.A. was founded in 1929 and is headquartered in Santiago, Chile. On May 26, 2020, LATAM Airlines Group S.A., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.
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