Deutsche Lufthansa (OTCMKTS:DLAKY) versus ANA (OTCMKTS:ALNPY) Critical Review

Deutsche Lufthansa (OTCMKTS:DLAKY) and ANA (OTCMKTS:ALNPY) are both mid-cap transportation companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Dividends

Deutsche Lufthansa pays an annual dividend of $0.22 per share and has a dividend yield of 2.8%. ANA pays an annual dividend of $0.04 per share and has a dividend yield of 1.1%. Deutsche Lufthansa pays out 19.3% of its earnings in the form of a dividend. ANA pays out 10.5% 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 Ratings

This is a breakdown of current ratings and recommmendations for Deutsche Lufthansa and ANA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Lufthansa	1	2	0	2	2.60
ANA	0	0	0	0	0.00

Volatility & Risk

Deutsche Lufthansa has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, ANA has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Deutsche Lufthansa	3.31%	12.03%	2.69%
ANA	6.79%	14.05%	4.32%

Earnings & Valuation

This table compares Deutsche Lufthansa and ANA”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Lufthansa	$40.67 billion	0.23	$1.49 billion	$1.14	6.88
ANA	$14.85 billion	0.59	$1.00 billion	$0.38	9.84

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

Summary

Deutsche Lufthansa beats ANA on 7 of the 13 factors compared between the two stocks.

About Deutsche Lufthansa

Deutsche Lufthansa AG operates as an aviation company worldwide. It operates in three segments: Passenger Airlines; Logistics; and Maintenance, Repair and Overhaul Services (MRO). The Passenger Airlines segment offers products and services to passengers of Lufthansa Airlines, SWISS, Austrian Airlines, Brussels Airlines, and Eurowings. Its Logistics segment offers airfreight container management, urgent shipments, and customs clearance services; and e-commerce solutions. The MRO segment provides maintenance, repair, and overhaul services for civil commercial aircraft serving original equipment manufacturers, aircraft leasing companies, operators of VIP jets, government, armed forces, and airlines. The company also offers corporate payment and billing services; vocational and professional training for cockpit and cabin crew; and IT solutions. As of December 31, 2023, it had a fleet of 721 aircraft. Deutsche Lufthansa AG was founded in 1926 and is headquartered in Cologne, Germany.

About ANA

ANA Holdings Inc., together with its subsidiaries, provides air transportation services in Japan and internationally. It operates through Air Transportation, Aviation-Related Business, Travel Business, and Trading Business segments. The Air Transportation segment offers regular and irregular air transport of passengers, cargo, etc. on domestic and international routes. The Aviation-Related Business segment provides services incidental to air transportation, such as airport handling and maintenance. The Travel Business develops and sells travel products, as well as plans and sells package travel products. The Trading Business imports and exports aviation-related materials, as well as sells through stores and mail-order channels. The company was formerly known as All Nippon Airways Co., Ltd. and changed its name to ANA Holdings Inc. in April 2013. ANA Holdings Inc. was incorporated in 1920 and is headquartered in Minato, Japan.