Financial Contrast: easyJet (OTCMKTS:EJTTF) vs. LATAM Airlines Group (LTM)

easyJet (OTCMKTS: EJTTF) and LATAM Airlines Group (NYSE:LTM) are both mid-cap transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.

Institutional & Insider Ownership

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3.1% of LATAM Airlines Group shares are owned by institutional investors. 7.9% of LATAM Airlines Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares easyJet and LATAM Airlines Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
easyJet N/A N/A N/A
LATAM Airlines Group 1.66% 3.75% 0.84%

Dividends

LATAM Airlines Group pays an annual dividend of $0.02 per share and has a dividend yield of 0.1%. easyJet does not pay a dividend. LATAM Airlines Group pays out 7.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent recommendations for easyJet and LATAM Airlines Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
easyJet 0 1 1 0 2.50
LATAM Airlines Group 4 2 0 0 1.33

LATAM Airlines Group has a consensus price target of $17.00, suggesting a potential upside of 7.94%. Given LATAM Airlines Group’s higher probable upside, analysts plainly believe LATAM Airlines Group is more favorable than easyJet.

Risk & Volatility

easyJet has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, LATAM Airlines Group has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.

Earnings and Valuation

This table compares easyJet and LATAM Airlines Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
easyJet $6.40 billion 1.44 $386.55 million N/A N/A
LATAM Airlines Group $9.61 billion 0.99 $155.30 million $0.26 60.58

easyJet has higher earnings, but lower revenue than LATAM Airlines Group.

Summary

LATAM Airlines Group beats easyJet on 8 of the 14 factors compared between the two stocks.

About easyJet

easyJet plc, together with its subsidiaries, operates as an airline carrier primarily in Europe. As of September 30, 2017, it operated 862 routes and a fleet of 279 aircraft. The company also engages in the trading and leasing of aircrafts; and the provision of graphic design services. easyJet plc was founded in 1995 and is based in Luton, the United Kingdom.

About LATAM Airlines Group

LATAM Airlines Group SA is a Chile-based company, which is engaged in passenger and cargo air transportation, both in the domestic markets of Chile, Peru, Argentina, Colombia, Ecuador and Brazil and in a developed series of regional and international routes in America, Europe and Oceania. These businesses are performed directly or through its subsidiaries in different countries. It operates through two segments: the Air transportation business and the Coalition and loyalty program Multiplus. It Air transportation segment corresponds to the route network for air transport. Its segment of Coalition and loyalty program called Multiplus is a frequent flyer programs, which operate as a unilateral system of loyalty that offers a flexible coalition system. The Company operates a fleet of over 329 aircrafts. Its passenger aircrafts include Airbus A319-100, Airbus A350-900, Boeing 767-300ER, Boeing 787-8, Boeing 787-9 and Boeing 777-300ER.

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