Financial Analysis: Grupo Aeroméxico (OTCMKTS:GRPAF) versus Allegiant Travel (NASDAQ:ALGT)

Allegiant Travel (NASDAQ:ALGT) and Grupo Aeroméxico (OTCMKTS:GRPAF) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Allegiant Travel and Grupo Aeroméxico, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegiant Travel	1	5	9	0	2.53
Grupo Aeroméxico	0	0	0	0	0.00

Allegiant Travel currently has a consensus target price of $127.00, indicating a potential upside of 49.82%. Given Allegiant Travel’s stronger consensus rating and higher possible upside, equities analysts clearly believe Allegiant Travel is more favorable than Grupo Aeroméxico.

Valuation and Earnings

This table compares Allegiant Travel and Grupo Aeroméxico”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allegiant Travel	$2.61 billion	0.89	-$44.70 million	$1.41	60.12
Grupo Aeroméxico	N/A	N/A	N/A	N/A	N/A

Grupo Aeroméxico has lower revenue, but higher earnings than Allegiant Travel.

Institutional and Insider Ownership

85.8% of Allegiant Travel shares are held by institutional investors. 12.8% of Allegiant Travel shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Allegiant Travel and Grupo Aeroméxico’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allegiant Travel	0.90%	12.69%	3.08%
Grupo Aeroméxico	N/A	N/A	N/A

Summary

Allegiant Travel beats Grupo Aeroméxico on 9 of the 9 factors compared between the two stocks.

About Allegiant Travel

Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited-frequency, nonstop flights between under-served cities and leisure destinations. As of February 1, 2024, it operated a fleet of 126 Airbus A320 series aircraft. The company also provides air-related services and products in conjunction with air transportation, including baggage fees, advance seat assignments, travel protection products, priority boarding, a customer convenience fee, food and beverage purchases on board, and other air-related services, as well as use of its call center for purchases. In addition, it offers third party travel products, such as hotel rooms and ground transportation, such as rental cars and hotel shuttle products; and air transportation services through fixed fee agreements and charter service on a year-round and ad-hoc basis. Further, the company operates a golf course. Allegiant Travel Company was founded in 1997 and is based in Las Vegas, Nevada.

About Grupo Aeroméxico

Grupo Aeroméxico, S.A.B. de C.V., through its subsidiaries, provides commercial aviation services for passengers and cargo. It provides services to 43 destinations in Mexico and 42 international destinations from Mexico. The company also promotes passenger loyalty programs. As of July 19, 2019, it had a fleet of 122 airplanes that include Boeing 787 and 737 jet airliners and Embraer 170 and 190 models. The company was founded in 1934 and is headquartered in Mexico City, Mexico.