Analyzing Copa Holdings, (CPA) and Alaska Air Group (ALK)
Copa Holdings, (NYSE: CPA) and Alaska Air Group (NYSE:ALK) are both mid-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.
Insider & Institutional Ownership
64.2% of Copa Holdings, shares are held by institutional investors. Comparatively, 87.7% of Alaska Air Group shares are held by institutional investors. 0.6% of Alaska Air Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Copa Holdings, has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500. Comparatively, Alaska Air Group has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.
Valuation and Earnings
This table compares Copa Holdings, and Alaska Air Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Copa Holdings,||$2.37 billion||2.26||$518.91 million||$7.91||15.96|
|Alaska Air Group||$6.94 billion||1.40||$1.84 billion||$6.16||12.80|
Alaska Air Group has higher revenue and earnings than Copa Holdings,. Alaska Air Group is trading at a lower price-to-earnings ratio than Copa Holdings,, indicating that it is currently the more affordable of the two stocks.
Copa Holdings, pays an annual dividend of $3.00 per share and has a dividend yield of 2.4%. Alaska Air Group pays an annual dividend of $1.20 per share and has a dividend yield of 1.5%. Copa Holdings, pays out 37.9% of its earnings in the form of a dividend. Alaska Air Group pays out 19.5% 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. Alaska Air Group has raised its dividend for 3 consecutive years.
This table compares Copa Holdings, and Alaska Air Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alaska Air Group||11.02%||30.04%||9.14%|
This is a breakdown of current recommendations for Copa Holdings, and Alaska Air Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alaska Air Group||0||2||7||0||2.78|
Copa Holdings, presently has a consensus target price of $115.14, indicating a potential downside of 8.79%. Alaska Air Group has a consensus target price of $100.75, indicating a potential upside of 27.81%. Given Alaska Air Group’s stronger consensus rating and higher probable upside, analysts clearly believe Alaska Air Group is more favorable than Copa Holdings,.
Alaska Air Group beats Copa Holdings, on 11 of the 17 factors compared between the two stocks.
Copa Holdings, Company Profile
Copa Holdings, S.A. is a provider of airline passenger and cargo service through its principal operating subsidiaries, Compania Panamena de Aviacion, S. A. (Copa Airlines) and AeroRepublica, S. A. (Copa Colombia). The Company operates through air transportation segment. Copa Airlines operates from its position located in the Republic of Panama. Copa Airlines provides international air transportation for passengers, cargo and mail, operating from its Panama City hub in the Republic of Panama. Copa Colombia provides service within Colombia and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mexico, Cuba, Guatemala and Costa Rica. Copa Colombia provides domestic and international air transportation for passengers, cargo and mail with a point-to-point route network. Its subsidiary, Oval Financial Leasing, Ltd., controls the special purpose entities that have a beneficial interest in the majority of its fleet.
Alaska Air Group Company Profile
Alaska Air Group, Inc. is the holding company of Alaska Airlines (Alaska), Virgin America Inc., Horizon Air (Horizon) and other business units. The Company operates through three segments: Mainline, Regional and Horizon. Its Mainline segment includes Alaska’s and Virgin America’s scheduled air transportation for passengers and cargo throughout the United States, and in parts of Canada, Mexico, Costa Rica and Cuba. Its Regional segment includes Horizon’s and other third-party carriers’ scheduled air transportation for passengers across a shorter distance network within the United States under capacity purchased arrangements (CPAs). Its Horizon segment includes the capacity sold to Alaska under CPA. Alaska and Virgin America operate fleets of narrowbody passenger jets. As of December 31, 2016, it maintained two frequent flyer plans: the Alaska Airlines Mileage Plan and the Virgin America Elevate.
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