Contrasting Allegiant Travel (NASDAQ:ALGT) & Corporacion America Airports (NYSE:CAAP)

Corporacion America Airports (NYSE:CAAPGet Free Report) and Allegiant Travel (NASDAQ:ALGTGet Free Report) are both transportation companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Insider & Institutional Ownership

13.0% of Corporacion America Airports shares are owned by institutional investors. Comparatively, 85.8% of Allegiant Travel shares are owned by institutional investors. 14.7% of Allegiant Travel shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Corporacion America Airports and Allegiant Travel, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Corporacion America Airports 1 1 6 0 2.63
Allegiant Travel 1 6 5 1 2.46

Corporacion America Airports currently has a consensus target price of $26.60, suggesting a potential upside of 5.28%. Allegiant Travel has a consensus target price of $97.91, suggesting a potential upside of 17.06%. Given Allegiant Travel’s higher possible upside, analysts clearly believe Allegiant Travel is more favorable than Corporacion America Airports.

Risk and Volatility

Corporacion America Airports has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Allegiant Travel has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.

Valuation and Earnings

This table compares Corporacion America Airports and Allegiant Travel”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Corporacion America Airports $1.96 billion 2.10 $247.72 million $1.54 16.41
Allegiant Travel $2.61 billion 0.59 -$44.70 million ($2.57) -32.54

Corporacion America Airports has higher earnings, but lower revenue than Allegiant Travel. Allegiant Travel is trading at a lower price-to-earnings ratio than Corporacion America Airports, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Corporacion America Airports and Allegiant Travel’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Corporacion America Airports 12.59% 15.93% 5.79%
Allegiant Travel -1.71% 6.61% 1.60%

Summary

Corporacion America Airports beats Allegiant Travel on 9 of the 15 factors compared between the two stocks.

About Corporacion America Airports

(Get Free Report)

Corporación América Airports S.A., through its subsidiaries, acquires, develops, and operates airport concessions. It operates 52 airports in Latin America, Europe, and Eurasia. The company was formerly known as A.C.I. Airports International S.à r.l. and changed its name to Corporación América Airports S.A. in September 2017. The company was founded in 1998 and is based in Luxembourg City, Luxembourg. Corporación América Airports S.A. is a subsidiary of A.C.I. Airports S.à r.l.

About Allegiant Travel

(Get Free Report)

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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