Critical Comparison: Air Transport Services Group (ATSG) versus Grupo Aeroportr dl Pcfco SAB de CV (PAC)

Air Transport Services Group (NASDAQ:ATSG) and Grupo Aeroportr dl Pcfco SAB de CV (NYSE:PAC) are both transportation companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Dividends

Grupo Aeroportr dl Pcfco SAB de CV pays an annual dividend of $4.70 per share and has a dividend yield of 4.6%. Air Transport Services Group does not pay a dividend. Grupo Aeroportr dl Pcfco SAB de CV pays out 98.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Grupo Aeroportr dl Pcfco SAB de CV has increased its dividend for 3 consecutive years.

Profitability

This table compares Air Transport Services Group and Grupo Aeroportr dl Pcfco SAB de CV’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Air Transport Services Group 7.76% 20.19% 4.97%
Grupo Aeroportr dl Pcfco SAB de CV 36.46% 24.08% 12.81%

Analyst Recommendations

This is a breakdown of recent recommendations for Air Transport Services Group and Grupo Aeroportr dl Pcfco SAB de CV, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Air Transport Services Group 0 0 5 0 3.00
Grupo Aeroportr dl Pcfco SAB de CV 1 2 3 0 2.33

Air Transport Services Group presently has a consensus target price of $28.60, indicating a potential upside of 22.48%. Grupo Aeroportr dl Pcfco SAB de CV has a consensus target price of $200.00, indicating a potential upside of 97.69%. Given Grupo Aeroportr dl Pcfco SAB de CV’s higher probable upside, analysts clearly believe Grupo Aeroportr dl Pcfco SAB de CV is more favorable than Air Transport Services Group.

Institutional & Insider Ownership

88.8% of Air Transport Services Group shares are held by institutional investors. Comparatively, 8.1% of Grupo Aeroportr dl Pcfco SAB de CV shares are held by institutional investors. 2.3% of Air Transport Services Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Air Transport Services Group has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Grupo Aeroportr dl Pcfco SAB de CV has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Earnings & Valuation

This table compares Air Transport Services Group and Grupo Aeroportr dl Pcfco SAB de CV’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Air Transport Services Group $892.34 million 1.55 $69.29 million $1.25 18.68
Grupo Aeroportr dl Pcfco SAB de CV $735.42 million 7.72 $267.72 million $4.77 21.21

Grupo Aeroportr dl Pcfco SAB de CV has lower revenue, but higher earnings than Air Transport Services Group. Air Transport Services Group is trading at a lower price-to-earnings ratio than Grupo Aeroportr dl Pcfco SAB de CV, indicating that it is currently the more affordable of the two stocks.

Summary

Grupo Aeroportr dl Pcfco SAB de CV beats Air Transport Services Group on 10 of the 17 factors compared between the two stocks.

About Air Transport Services Group

Air Transport Services Group, Inc., through its subsidiaries, operates in the airfreight and logistics industry. The company owns and leases cargo aircraft to airlines and other customers. It also provides airline operations to delivery companies, airlines, freight forwarders, and the U.S. Military, as well as operates charter agreements. In addition, the company offers mail and package sorting services, as well as related maintenance services for material handling equipment, ground equipment, and facilities; airframe modification and maintenance, component repair, engineering, aircraft line maintenance, and insurance services; and flight crew training, load transfer and sorting services. Further, it rents ground equipment and sells aviation fuel; and resells and brokers aircraft parts. As of December 31, 2018, the company owned a fleet of 91 serviceable Boeing 777,767, 757, and 737 passenger and cargo aircraft. The company, formerly known as ABX Holdings, Inc., was founded in 1980 and is headquartered in Wilmington, Ohio.

About Grupo Aeroportr dl Pcfco SAB de CV

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. operates airports primarily in Mexico's Pacific region. It has 12 airports in Guadalajara, Puerto Vallarta, Tijuana, San Jose del Cabo, Guanajuato (Bajío), Hermosillo, Mexicali, Los Mochis, La Paz, Manzanillo, Morelia, and Aguascalientes, as well as 1 international airport in Jamaica. The company was incorporated in 1998 and is headquartered in Guadalajara, Mexico.

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