Critical Analysis: Copa (CPA) & Its Rivals

Copa (NYSE:CPA) is one of 37 publicly-traded companies in the “TRANS – AIRLINE” industry, but how does it contrast to its peers? We will compare Copa to related companies based on the strength of its valuation, earnings, profitability, dividends, institutional ownership, risk and analyst recommendations.

Profitability

This table compares Copa and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Copa	18.57%	25.62%	10.92%
Copa Competitors	5.09%	18.23%	4.20%

Insider and Institutional Ownership

70.1% of Copa shares are held by institutional investors. Comparatively, 52.5% of shares of all “TRANS – AIRLINE” companies are held by institutional investors. 8.5% of shares of all “TRANS – AIRLINE” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Copa pays an annual dividend of $6.84 per share and has a dividend yield of 5.9%. Copa pays out 42.0% of its earnings in the form of a dividend. As a group, “TRANS – AIRLINE” companies pay a dividend yield of 2.3% and pay out 21.0% of their earnings in the form of a dividend. Copa has raised its dividend for 2 consecutive years.

Volatility & Risk

Copa has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Copa’s peers have a beta of 11.12, meaning that their average stock price is 1,012% more volatile than the S&P 500.

Earnings & Valuation

This table compares Copa and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Copa	$3.62 billion	$671.65 million	7.10
Copa Competitors	$14.07 billion	$672.84 million	27.76

Copa’s peers have higher revenue and earnings than Copa. Copa is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations for Copa and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Copa	0	2	8	1	2.91
Copa Competitors	651	2289	3409	240	2.49

Copa presently has a consensus price target of $164.22, suggesting a potential upside of 42.20%. As a group, “TRANS – AIRLINE” companies have a potential upside of 27.64%. Given Copa’s stronger consensus rating and higher possible upside, analysts plainly believe Copa is more favorable than its peers.

Summary

Copa beats its peers on 9 of the 15 factors compared.

Copa Company Profile

Copa Holdings, S.A., through its subsidiaries, provides airline passenger and cargo services. The company offers approximately 375 daily scheduled flights to 82 destinations in 32 countries in North, Central, and South America, as well as the Caribbean from its Panama City hub. As of December 31, 2023, it operated a fleet of 106 aircraft comprising 76 Boeing 737-Next Generation aircraft, 29 Boeing 737 MAX 9 aircraft, and one Boeing 737-800 Boeing Converted Freighter. The company was founded in 1947 and is based in Panama City, Panama.