China Southern Airlines Company Limited (ZNH) vs. Delta Air Lines (DAL) Head-To-Head Analysis
China Southern Airlines Company Limited (NYSE: ZNH) and Delta Air Lines (NYSE:DAL) are both mid-cap transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitabiliy.
China Southern Airlines Company Limited pays an annual dividend of $0.64 per share and has a dividend yield of 1.7%. Delta Air Lines pays an annual dividend of $0.81 per share and has a dividend yield of 1.7%. Delta Air Lines pays out 16.1% of its earnings in the form of a dividend. China Southern Airlines Company Limited has raised its dividend for 2 consecutive years and Delta Air Lines has raised its dividend for 3 consecutive years.
Volatility and Risk
China Southern Airlines Company Limited has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Delta Air Lines has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for China Southern Airlines Company Limited and Delta Air Lines, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Southern Airlines Company Limited||1||0||1||0||2.00|
|Delta Air Lines||0||1||15||0||2.94|
Delta Air Lines has a consensus target price of $60.87, indicating a potential upside of 24.12%. Given Delta Air Lines’ stronger consensus rating and higher possible upside, analysts clearly believe Delta Air Lines is more favorable than China Southern Airlines Company Limited.
Earnings & Valuation
This table compares China Southern Airlines Company Limited and Delta Air Lines’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|China Southern Airlines Company Limited||$17.54 billion||0.41||$2.92 billion||N/A||N/A|
|Delta Air Lines||$39.88 billion||0.90||$7.48 billion||$5.03||9.75|
Delta Air Lines has higher revenue and earnings than China Southern Airlines Company Limited.
This table compares China Southern Airlines Company Limited and Delta Air Lines’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Southern Airlines Company Limited||N/A||N/A||N/A|
|Delta Air Lines||9.30%||28.33%||7.06%|
Institutional and Insider Ownership
0.5% of China Southern Airlines Company Limited shares are owned by institutional investors. Comparatively, 87.7% of Delta Air Lines shares are owned by institutional investors. 0.4% of Delta Air Lines shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Delta Air Lines beats China Southern Airlines Company Limited on 13 of the 16 factors compared between the two stocks.
About China Southern Airlines Company Limited
China Southern Airlines Company Limited is principally engaged in the operation of civil aviation, including the provision of passenger, cargo, mail delivery and other extended transportation services. The Company operates through two business segments, including Airline Transportation segment and Other segment. Airline Transportation segment consist of passenger and cargo and mail operations. Other segment includes hotel and tour operation, ground services, cargo handling and other miscellaneous services. . The Company also provides services of general aviation and aircraft maintenance. The Company acts as an agency of domestic and foreign airlines, and other aviation and related business, such as personal accident insurance and agency business.
About Delta Air Lines
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo throughout the United States and across the world. The Company’s segments include Airline and Refinery. The Company’s route network is centered around a system of hub, international gateway and airports that the Company operates in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Minneapolis-St. Paul, New York-LaGuardia, New York- John F Kennedy International Airport, Paris-Charles de Gaulle, Salt Lake City, Seattle and Tokyo-Narita. Each of these operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub or gateway to domestic and international cities and to other hubs or gateways. The Company’s route network includes its international joint ventures, its alliances with other foreign airlines, its membership in SkyTeam and agreements with multiple domestic regional carriers that operate as Delta Connection.
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