Deutsche Lufthansa (OTCMKTS:DLAKY) and ANA (OTCMKTS:ALNPY) Head to Head Analysis

ANA (OTCMKTS:ALNPY) and Deutsche Lufthansa (OTCMKTS:DLAKY) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Analyst Ratings

This is a summary of current ratings for ANA and Deutsche Lufthansa, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ANA	0	2	0	1	2.67
Deutsche Lufthansa	3	3	0	1	1.86

Profitability

This table compares ANA and Deutsche Lufthansa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ANA	5.85%	11.15%	4.16%
Deutsche Lufthansa	2.72%	10.15%	2.46%

Volatility and Risk

ANA has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Deutsche Lufthansa has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Earnings & Valuation

This table compares ANA and Deutsche Lufthansa”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ANA	$16.87 billion	0.56	$1.12 billion	$0.39	10.41
Deutsche Lufthansa	$44.79 billion	0.26	$1.51 billion	$1.19	8.15

Deutsche Lufthansa has higher revenue and earnings than ANA. Deutsche Lufthansa is trading at a lower price-to-earnings ratio than ANA, indicating that it is currently the more affordable of the two stocks.

Dividends

ANA pays an annual dividend of $0.05 per share and has a dividend yield of 1.2%. Deutsche Lufthansa pays an annual dividend of $0.26 per share and has a dividend yield of 2.7%. ANA pays out 12.8% of its earnings in the form of a dividend. Deutsche Lufthansa pays out 21.8% 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.

Summary

ANA beats Deutsche Lufthansa on 7 of the 12 factors compared between the two stocks.

About ANA

ANA Holdings Inc. is a Japanese aviation group whose principal business is air transportation. Its flagship carrier, All Nippon Airways (ANA), provides domestic and international passenger services, while the group also operates air cargo and related aviation businesses. The group serves travelers and businesses through a range of airline services. Its airline operations include ANA, a full-service carrier, and Peach Aviation, a low-cost carrier. ANA Cargo provides air freight services, and the group also has businesses related to travel and aviation support.

About Deutsche Lufthansa

Deutsche Lufthansa AG is a German aviation group whose businesses include passenger airlines, air cargo and aircraft maintenance. Its airline portfolio includes Lufthansa, SWISS, Austrian Airlines, Brussels Airlines and Eurowings, serving destinations in Europe and around the world. The group also provides aviation services through businesses such as Lufthansa Cargo, which transports freight, and Lufthansa Technik, which maintains, repairs and overhauls aircraft and related equipment. Lufthansa’s main passenger hubs are Frankfurt and Munich.