Critical Review: Corporacion America Airports (NYSE:CAAP) and Fraport (OTCMKTS:FPRUF)

Corporacion America Airports (NYSE:CAAP) and Fraport (OTCMKTS:FPRUF) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares Corporacion America Airports and Fraport’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corporacion America Airports	13.58%	16.69%	6.33%
Fraport	N/A	N/A	N/A

Earnings and Valuation

This table compares Corporacion America Airports and Fraport”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corporacion America Airports	$2.12 billion	1.81	$247.72 million	$1.78	13.09
Fraport	N/A	N/A	N/A	$2.41	35.27

Corporacion America Airports has higher revenue and earnings than Fraport. Corporacion America Airports is trading at a lower price-to-earnings ratio than Fraport, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

12.9% of Corporacion America Airports shares are owned by institutional investors. Comparatively, 16.9% of Fraport shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Corporacion America Airports pays an annual dividend of $0.90 per share and has a dividend yield of 3.9%. Fraport pays an annual dividend of $0.94 per share and has a dividend yield of 1.1%. Corporacion America Airports pays out 50.6% of its earnings in the form of a dividend. Fraport pays out 38.9% 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Corporacion America Airports and Fraport, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corporacion America Airports	0	2	4	0	2.67
Fraport	0	0	0	0	0.00

Corporacion America Airports presently has a consensus price target of $30.12, suggesting a potential upside of 29.29%. Given Corporacion America Airports’ stronger consensus rating and higher probable upside, research analysts clearly believe Corporacion America Airports is more favorable than Fraport.

Summary

Corporacion America Airports beats Fraport on 8 of the 12 factors compared between the two stocks.

About Corporacion America Airports

Corporación América Airports S.A., through its subsidiaries, acquires, develops, and operates airport concessions. It operates 52 airports in Latin America, Europe, and Eurasia. The company was formerly known as A.C.I. Airports International S.à r.l. and changed its name to Corporación América Airports S.A. in September 2017. The company was founded in 1998 and is based in Luxembourg City, Luxembourg. Corporación América Airports S.A. is a subsidiary of A.C.I. Airports S.à r.l.

About Fraport

Fraport AG owns and operates airports in Germany, rest of Europe, Asia, and the United States. It primarily focuses on the operation of Frankfurt Main airport. The company operates through four segments: Aviation, Retail & Real Estate, Ground Handling, and International Activities & Services. The Aviation segment operates land and airside infrastructure, which covers the area of airport charges and related security services. The Retail & Real Estate segment engages in retail activities, including development and marketing of real estate properties and land. This segment also manages buildings and facilities, and parking and retail areas; and rents advertising space. The Ground Handling segment provides loading, baggage, passenger, airmail and luggage transport, and freight handling services. The International Activities & Services segment acquires, operates, maintains, develops, and expands airports and infrastructure facilities. This segment also offers consulting services; integrated facility and corporate infrastructure management, airport expansion south, and information and telecommunication services. Fraport AG was founded in 1924 and is headquartered in Frankfurt am Main, Germany.