Critical Analysis: Norwegian Air Shuttle ASA (NWARF) vs. Its Rivals

Norwegian Air Shuttle ASA (OTCMKTS:NWARF) is one of 81 publicly-traded companies in the “Passenger Airlines” industry, but how does it contrast to its peers? We will compare Norwegian Air Shuttle ASA to similar companies based on the strength of its institutional ownership, risk, profitability, dividends, analyst recommendations, valuation and earnings.

Earnings & Valuation

This table compares Norwegian Air Shuttle ASA and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Norwegian Air Shuttle ASA	N/A	N/A	-0.17
Norwegian Air Shuttle ASA Competitors	$14.25 billion	$623.26 million	17.63

Norwegian Air Shuttle ASA’s peers have higher revenue and earnings than Norwegian Air Shuttle ASA. Norwegian Air Shuttle ASA 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.

Institutional and Insider Ownership

31.8% of Norwegian Air Shuttle ASA shares are owned by institutional investors. Comparatively, 41.6% of shares of all “Passenger Airlines” companies are owned by institutional investors. 10.5% of shares of all “Passenger Airlines” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Norwegian Air Shuttle ASA and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Norwegian Air Shuttle ASA	0	1	1	0	2.50
Norwegian Air Shuttle ASA Competitors	1478	4004	6576	347	2.47

As a group, “Passenger Airlines” companies have a potential upside of 51.31%. Given Norwegian Air Shuttle ASA’s peers higher possible upside, analysts clearly believe Norwegian Air Shuttle ASA has less favorable growth aspects than its peers.

Profitability

This table compares Norwegian Air Shuttle ASA and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Norwegian Air Shuttle ASA	N/A	N/A	N/A
Norwegian Air Shuttle ASA Competitors	-16.57%	7.57%	0.54%

Summary

Norwegian Air Shuttle ASA peers beat Norwegian Air Shuttle ASA on 9 of the 11 factors compared.

About Norwegian Air Shuttle ASA

Norwegian Air Shuttle ASA, together with its subsidiaries, provides air travel services in Norway and internationally. It is also involved in aircraft financing, leasing, and ownership activities; and cargo activities. It operates a fleet of 87 aircrafts. Norwegian Air Shuttle ASA was founded in 1993 and is headquartered in Fornebu, Norway.