ANA (OTCMKTS: ALNPY) and Delta Air Lines (NYSE:DAL) are both large-cap transportation companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Analyst Ratings

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This is a summary of recent recommendations and price targets for ANA and Delta Air Lines, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ANA 0 1 0 0 2.00
Delta Air Lines 0 0 15 0 3.00

Delta Air Lines has a consensus price target of $68.21, suggesting a potential upside of 21.92%. Given Delta Air Lines’ stronger consensus rating and higher possible upside, analysts plainly believe Delta Air Lines is more favorable than ANA.

Dividends

ANA pays an annual dividend of $0.11 per share and has a dividend yield of 1.4%. Delta Air Lines pays an annual dividend of $1.22 per share and has a dividend yield of 2.2%. ANA pays out 14.9% of its earnings in the form of a dividend. Delta Air Lines pays out 24.7% 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. Delta Air Lines has raised its dividend for 4 consecutive years. Delta Air Lines is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares ANA and Delta Air Lines’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ANA $16.33 billion 0.84 $919.09 million $0.74 10.54
Delta Air Lines $41.24 billion 0.96 $3.58 billion $4.94 11.33

Delta Air Lines has higher revenue and earnings than ANA. ANA is trading at a lower price-to-earnings ratio than Delta Air Lines, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ANA and Delta Air Lines’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ANA 7.98% 12.06% 4.74%
Delta Air Lines 8.67% 26.27% 6.85%

Risk & Volatility

ANA has a beta of 0.12, indicating that its stock price is 88% less volatile than the S&P 500. Comparatively, Delta Air Lines has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of ANA shares are held by institutional investors. Comparatively, 87.6% of Delta Air Lines shares are held by institutional investors. 0.4% of Delta Air Lines shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Delta Air Lines beats ANA on 16 of the 17 factors compared between the two stocks.

About ANA

ANA HOLDINGS INC. is a holding company. The Company operates as an aviation company with global operations. Its segments include Air Transportation, Airline Related, Travel Services, Trade and Retail, and Others. The Air Transportation business comprises domestic passenger operations, international passenger operations, and cargo and mail operations. The Airline Related business includes airport ground services, aircraft maintenance, vehicle maintenance, cargo and logistics, in-flight catering and call centers, as well as commission work from airlines outside the group. The Travel Services segment offers a range of travel services, including travel packages, such as ANA Sky Holiday for domestic travel, and ANA Hallo Tour and ANA Wonder Earth for international travel. The Trade and Retail segment is involved in aircraft parts procurement, aircraft import/export, leasing and sales, planning and procurement for in-flight services and merchandise sales and airport retail operations.

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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