United Continental (OTCMKTS: DLAKY) and Deutsche Lufthansa (OTCMKTS:DLAKY) are both large-cap transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Earnings and Valuation

This table compares United Continental and Deutsche Lufthansa’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United Continental $37.74 billion 0.65 $2.13 billion $6.76 13.30
Deutsche Lufthansa $40.19 billion 0.32 $2.67 billion N/A N/A

Deutsche Lufthansa has higher revenue and earnings than United Continental.

Analyst Ratings

This is a breakdown of recent recommendations for United Continental and Deutsche Lufthansa, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Continental 0 8 7 1 2.56
Deutsche Lufthansa 2 1 3 0 2.17

United Continental currently has a consensus target price of $90.14, indicating a potential upside of 0.23%. Given United Continental’s stronger consensus rating and higher possible upside, equities research analysts plainly believe United Continental is more favorable than Deutsche Lufthansa.

Volatility & Risk

United Continental has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Deutsche Lufthansa has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Insider & Institutional Ownership

95.2% of United Continental shares are held by institutional investors. Comparatively, 0.2% of Deutsche Lufthansa shares are held by institutional investors. 0.3% of United Continental shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Deutsche Lufthansa pays an annual dividend of $0.67 per share and has a dividend yield of 2.5%. United Continental does not pay a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
United Continental 5.23% 24.28% 4.86%
Deutsche Lufthansa 6.59% 25.87% 6.21%

Summary

United Continental beats Deutsche Lufthansa on 9 of the 15 factors compared between the two stocks.

About United Continental

United Continental Holdings, Inc., together with its subsidiaries, provides air transportation services in North America, the Asia-Pacific, Europe, the Middle East, Africa, and Latin America. It transports people and cargo through its mainline and regional operations. As of December 31, 2017, the company operated a fleet of 1,262 aircraft. It also sells fuel; and offers catering, ground handling, and maintenance services for third parties. The company was formerly known as UAL Corporation and changed its name to United Continental Holdings, Inc. in October 2010. United Continental Holdings, Inc. was founded in 1934 and is based in Chicago, Illinois.

About Deutsche Lufthansa

Deutsche Lufthansa AG operates as an aviation company in Germany and internationally. It operates through Network Airlines, Point-to-Point Airlines, Logistics, MRO, Catering segments. The Network Airlines segment offers passenger services through a route network of 263 destinations in 86 countries. The Point-to-Point Airlines segment provides passenger services through a route network of 192 destinations in 62 countries. The Logistics segment offers a range of cargo transport services for various cargos, including live animals, valuable cargo, mail, dangerous goods, and temperature-sensitive cargo. This segment serves approximately 300 destinations in approximately 100 countries. The MRO segment provides maintenance, repair, and overhaul services for civilian commercial aircraft. It serves airlines and aircraft leasing companies, operators of VIP jets, and public-sector clients. The Catering segment offers catering, in-flight sales and in-flight entertainment, in-flight service equipment, and the associated logistics, as well as consulting services and operating airport lounges. The company also provides consulting and IT services for the aviation industry; training courses in simulator training, emergency and service drill, and e-learning; business travel management solutions in the area of payment and analysis of corporate travel; and aviation and transport insurance products, as well as insurance brokerage, reinsurance, and risk management services. As of December 31, 2017, it had a fleet of 728 aircraft. Deutsche Lufthansa AG is headquartered in Cologne, Germany.

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