Reviewing NextTrip (NASDAQ:NTRP) & Transat A.T. (OTCMKTS:TRZBF)

Transat A.T. (OTCMKTS:TRZBF) and NextTrip (NASDAQ:NTRP) are both consumer cyclical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

62.6% of Transat A.T. shares are held by institutional investors. Comparatively, 3.8% of NextTrip shares are held by institutional investors. 44.5% of NextTrip shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Transat A.T. and NextTrip’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transat A.T.	N/A	N/A	N/A
NextTrip	-1,323.22%	-298.91%	-139.68%

Analyst Recommendations

This is a summary of recent recommendations for Transat A.T. and NextTrip, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transat A.T.	1	1	1	0	2.00
NextTrip	1	1	0	0	1.50

NextTrip has a consensus target price of $5.00, suggesting a potential upside of 17.92%. Given NextTrip’s higher probable upside, analysts plainly believe NextTrip is more favorable than Transat A.T..

Valuation & Earnings

This table compares Transat A.T. and NextTrip”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transat A.T.	N/A	N/A	N/A	$0.59	3.22
NextTrip	$500,000.00	73.78	-$10.12 million	($1.41)	-3.01

Transat A.T. has higher earnings, but lower revenue than NextTrip. NextTrip is trading at a lower price-to-earnings ratio than Transat A.T., indicating that it is currently the more affordable of the two stocks.

Summary

Transat A.T. beats NextTrip on 8 of the 11 factors compared between the two stocks.

About Transat A.T.

Transat A.T. Inc., together with its subsidiaries, engages in the leisure travel business primarily in Europe and the Caribbean. It offers vacation packages, hotel stays, and air travel services under the Transat and Air Transat brands. The company also offers air transportation services; outgoing tours; and destination services, including hospitality and representation, passenger transfers, excursions, tours, sports, and other activities, as well as specialty services, such as destination weddings, teambuilding, etc. In addition, it engages in the retail distribution activities, which includes providing advice to travelers. As of October 31, 2023, it had 13 Airbus A330s, 15 Airbus A321LRs, and 8 Airbus A321ceos fleets. Transat A.T. Inc. was incorporated in 1987 and is headquartered in Montreal, Canada.

About NextTrip

NextTrip, Inc., through its subsidiaries, engages in the provision of travel technology solutions in the United States. The company offers NXT2.0, a booking engine technology platform, which provides travel distributors access to an inventory. It is also involved in the provision of online leisure travel agency services for booking hotels, flights, and curated vacations. The company was formerly known as Sigma Additive Solutions, Inc. and changed its name to NextTrip, Inc. in March 2024. NextTrip, Inc. is based in Sunrise, Florida.