Japan Airlines (OTCMKTS:JAPSY – Get Free Report) and Allegiant Travel (NASDAQ:ALGT – Get Free Report) are both transportation companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.
Valuation & Earnings
This table compares Japan Airlines and Allegiant Travel”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Japan Airlines | $12.11 billion | 0.68 | $706.45 million | $0.92 | 10.18 |
| Allegiant Travel | $2.51 billion | 0.45 | -$240.24 million | ($15.94) | -3.83 |
Profitability
This table compares Japan Airlines and Allegiant Travel’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Japan Airlines | 6.35% | 12.28% | 4.37% |
| Allegiant Travel | -11.10% | 5.00% | 1.26% |
Risk and Volatility
Japan Airlines has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Allegiant Travel has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Japan Airlines and Allegiant Travel, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Japan Airlines | 0 | 1 | 0 | 1 | 3.00 |
| Allegiant Travel | 2 | 8 | 1 | 1 | 2.08 |
Allegiant Travel has a consensus price target of $70.56, suggesting a potential upside of 15.59%. Given Allegiant Travel’s higher possible upside, analysts plainly believe Allegiant Travel is more favorable than Japan Airlines.
Institutional & Insider Ownership
85.8% of Allegiant Travel shares are held by institutional investors. 14.7% of Allegiant Travel shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Japan Airlines beats Allegiant Travel on 9 of the 14 factors compared between the two stocks.
About Japan Airlines
Japan Airlines Co., Ltd., together with its subsidiaries, provides scheduled and non-scheduled air transport services in Japan, Asia, Oceania, North America, and Europe. The company operates through Air Transportation and Other segments. It offers passenger, ground handling, cargo and mail handling, and maintenance services. The company is also involved in the aerial work and other related business; airport peripheral business; and sale of travel package tours. As of March 31, 2023, it operated a fleet of 224 aircraft. The company was formerly known as Japan Airlines International Co., Ltd. and changed its name to Japan Airlines Co., Ltd. in April 2011. The company was founded in 1951 and is headquartered in Tokyo, Japan.
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.
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