Grupo Aeroportuario del Sureste (NYSE:ASR) and ZTO Express (Cayman) (NYSE:ZTO) Critical Analysis

Grupo Aeroportuario del Sureste (NYSE:ASR) and ZTO Express (Cayman) (NYSE:ZTO) are both large-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Dividends

Grupo Aeroportuario del Sureste pays an annual dividend of $37.83 per share and has a dividend yield of 10.5%. ZTO Express (Cayman) pays an annual dividend of $0.58 per share and has a dividend yield of 2.5%. Grupo Aeroportuario del Sureste pays out 200.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ZTO Express (Cayman) pays out 38.4% of its earnings in the form of a dividend.

Insider & Institutional Ownership

10.6% of Grupo Aeroportuario del Sureste shares are owned by institutional investors. Comparatively, 41.7% of ZTO Express (Cayman) shares are owned by institutional investors. 41.3% of ZTO Express (Cayman) shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Grupo Aeroportuario del Sureste and ZTO Express (Cayman)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Aeroportuario del Sureste	31.96%	20.67%	13.44%
ZTO Express (Cayman)	18.61%	14.33%	9.89%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Grupo Aeroportuario del Sureste and ZTO Express (Cayman), as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Aeroportuario del Sureste	1	4	2	0	2.14
ZTO Express (Cayman)	0	3	3	1	2.71

Grupo Aeroportuario del Sureste currently has a consensus price target of $305.00, indicating a potential downside of 15.21%. ZTO Express (Cayman) has a consensus price target of $22.36, indicating a potential downside of 5.35%. Given ZTO Express (Cayman)’s stronger consensus rating and higher possible upside, analysts clearly believe ZTO Express (Cayman) is more favorable than Grupo Aeroportuario del Sureste.

Risk and Volatility

Grupo Aeroportuario del Sureste has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, ZTO Express (Cayman) has a beta of -0.18, suggesting that its share price is 118% less volatile than the S&P 500.

Valuation and Earnings

This table compares Grupo Aeroportuario del Sureste and ZTO Express (Cayman)”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Aeroportuario del Sureste	$1.72 billion	6.28	$743.97 million	$18.86	19.07
ZTO Express (Cayman)	$6.07 billion	2.30	$1.21 billion	$1.51	15.65

ZTO Express (Cayman) has higher revenue and earnings than Grupo Aeroportuario del Sureste. ZTO Express (Cayman) is trading at a lower price-to-earnings ratio than Grupo Aeroportuario del Sureste, indicating that it is currently the more affordable of the two stocks.

Summary

ZTO Express (Cayman) beats Grupo Aeroportuario del Sureste on 9 of the 17 factors compared between the two stocks.

About Grupo Aeroportuario del Sureste

Grupo Aeroportuario del Sureste, S. A. B. de C. V. holds concessions to operate, maintain, and develop airports in the southeast region of Mexico. The company operates airports that are located in the cities of Cancún, Cozumel, Mérida, Huatulco, Oaxaca, Veracruz, Villahermosa, Tapachula, and Minatitlán. It provides aeronautical services, which include passenger, aircraft landing and parking, passenger walkway, and airport security services. The company also offers non-aeronautical services, such as leasing of space at its airports to retailers, restaurants, airlines, and other commercial tenants; catering, handling, and ground transportation services, as well as engages in the various commercial operations. In addition, it holds concessions to operate the Luis Muñoz Marín International Airport in San Juan, Puerto Rico; and various airports in Colombia, including the Enrique Olaya Herrera Airport in Medellín, the José María Córdova International Airport in Rionegro, the Los Garzones Airport in Montería, the Antonio Roldán Betancourt Airport in Carepa, the El Caraño Airport in Quibdó, and the Las Brujas Airport in Corozal. Grupo Aeroportuario del Sureste, S. A. B. de C. V. was founded in 1996 and is headquartered in Mexico City, Mexico.

About ZTO Express (Cayman)

ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People's Republic of China. It offers freight forwarding services; and delivery services for e-commerce and traditional merchants, and other express service users. The company was founded in 2002 and is headquartered in Shanghai, the People's Republic of China.