Deutsche Lufthansa (NASDAQ: RYAAY) and Ryanair (NASDAQ:RYAAY) are both large-cap transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.
Institutional and Insider Ownership
0.2% of Deutsche Lufthansa shares are held by institutional investors. Comparatively, 43.9% of Ryanair shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for Deutsche Lufthansa and Ryanair, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
This table compares Deutsche Lufthansa and Ryanair’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Deutsche Lufthansa and Ryanair’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Deutsche Lufthansa||$40.19 billion||0.31||$2.67 billion||$5.68||4.60|
|Ryanair||$8.37 billion||2.85||$1.70 billion||$7.05||14.45|
Deutsche Lufthansa has higher revenue and earnings than Ryanair. Deutsche Lufthansa is trading at a lower price-to-earnings ratio than Ryanair, indicating that it is currently the more affordable of the two stocks.
Deutsche Lufthansa pays an annual dividend of $0.67 per share and has a dividend yield of 2.6%. Ryanair does not pay a dividend. Deutsche Lufthansa pays out 11.8% of its earnings in the form of a dividend.
Risk and Volatility
Deutsche Lufthansa has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Ryanair has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.
Ryanair beats Deutsche Lufthansa on 9 of the 13 factors compared between the two stocks.
About Deutsche Lufthansa
Deutsche Lufthansa AG operates as an aviation company in Germany and internationally. It operates through Network Airlines, Point-to-Point Airlines, Logistics, MRO, Catering segments. The Network Airlines segment offers passenger services through a route network of 263 destinations in 86 countries. The Point-to-Point Airlines segment provides passenger services through a route network of 192 destinations in 62 countries. The Logistics segment offers a range of cargo transport services for various cargos, including live animals, valuable cargo, mail, dangerous goods, and temperature-sensitive cargo. This segment serves approximately 300 destinations in approximately 100 countries. The MRO segment provides maintenance, repair, and overhaul services for civilian commercial aircraft. It serves airlines and aircraft leasing companies, operators of VIP jets, and public-sector clients. The Catering segment offers catering, in-flight sales and in-flight entertainment, in-flight service equipment, and the associated logistics, as well as consulting services and operating airport lounges. The company also provides consulting and IT services for the aviation industry; training courses in simulator training, emergency and service drill, and e-learning; business travel management solutions in the area of payment and analysis of corporate travel; and aviation and transport insurance products, as well as insurance brokerage, reinsurance, and risk management services. As of December 31, 2017, it had a fleet of 728 aircraft. Deutsche Lufthansa AG is headquartered in Cologne, Germany.
Ryanair Holdings plc, together with its subsidiaries, provides scheduled-passenger airline services in Ireland, the United Kingdom, continental Europe, Morocco, and Israel. It also offers various ancillary services, such as non-flight scheduled services and Internet-related services; and markets accommodation services and travel insurance through its Website, as well as engages in the in-flight sale of beverages, food, and merchandise. In addition, the company sells bus and rail tickets onboard its aircraft and through its Website; and markets car parking, attractions, and activities, as well as gift vouchers through its Website. It operates a fleet of 350 Boeing 737-800 aircraft and 33 leased aircraft; and offers approximately 2,000 scheduled short-haul flights per day serving approximately 200 airports primarily in Europe. The company was founded in 1985 and is headquartered in Swords, Ireland.
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