Analyzing Copa (CPA) & Its Rivals

Copa (NYSE:CPA) is one of 78 public companies in the “Passenger Airlines” industry, but how does it weigh in compared to its competitors? We will compare Copa to similar businesses based on the strength of its valuation, dividends, institutional ownership, risk, earnings, analyst recommendations and profitability.

Profitability

This table compares Copa and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Copa	15.71%	22.40%	9.32%
Copa Competitors	-8.87%	4.80%	1.10%

Volatility and Risk

Copa has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Copa’s competitors have a beta of 18.44, indicating that their average stock price is 1,744% more volatile than the S&P 500.

Insider and Institutional Ownership

70.1% of Copa shares are owned by institutional investors. Comparatively, 42.0% of shares of all “Passenger Airlines” companies are owned by institutional investors. 10.5% of shares of all “Passenger Airlines” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Copa pays an annual dividend of $6.84 per share and has a dividend yield of 4.6%. Copa pays out 45.0% of its earnings in the form of a dividend. As a group, “Passenger Airlines” companies pay a dividend yield of 1.5% and pay out 23.9% of their earnings in the form of a dividend. Copa has raised its dividend for 2 consecutive years.

Valuation and Earnings

This table compares Copa and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Copa	$3.62 billion	$671.65 million	9.81
Copa Competitors	$15.27 billion	$637.69 million	19.97

Copa’s competitors have higher revenue, but lower earnings than Copa. Copa is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Copa and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Copa	0	1	10	1	3.00
Copa Competitors	1527	4066	6688	356	2.46

Copa currently has a consensus price target of $172.20, indicating a potential upside of 15.40%. As a group, “Passenger Airlines” companies have a potential upside of 3.52%. Given Copa’s stronger consensus rating and higher possible upside, equities analysts clearly believe Copa is more favorable than its competitors.

Summary

Copa beats its competitors on 10 of the 15 factors compared.

About Copa

Copa Holdings, S.A. is a Panama-based airline holding company whose principal operations are conducted through Copa Airlines and its low-cost subsidiary, Wingo. Copa Airlines provides scheduled passenger service and cargo transportation, while Wingo offers lower-cost air travel, primarily in the Colombian market. From its hub at Tocumen International Airport in Panama City, Copa Airlines connects destinations across North, Central and South America and the Caribbean. The hub’s location supports connections between cities throughout the region.