LATAM Airlines Group (NYSE: LTM) is one of 31 public companies in the “Airlines” industry, but how does it contrast to its competitors? We will compare LATAM Airlines Group to similar companies based on the strength of its valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Profitability

This table compares LATAM Airlines Group and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LATAM Airlines Group -0.14% -0.16% -0.03%
LATAM Airlines Group Competitors 3.84% 10.71% 3.57%

Volatility & Risk

LATAM Airlines Group has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500. Comparatively, LATAM Airlines Group’s competitors have a beta of 1.20, indicating that their average stock price is 20% more volatile than the S&P 500.

Earnings & Valuation

This table compares LATAM Airlines Group and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
LATAM Airlines Group $9.29 billion $1.41 billion -1,391.61
LATAM Airlines Group Competitors $8.60 billion $1.61 billion -87.99

LATAM Airlines Group has higher revenue, but lower earnings than its competitors. LATAM Airlines Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

LATAM Airlines Group pays an annual dividend of $0.02 per share and has a dividend yield of 0.1%. LATAM Airlines Group pays out -199.8% of its earnings in the form of a dividend. As a group, “Airlines” companies pay a dividend yield of 1.8% and pay out 33.5% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for LATAM Airlines Group and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LATAM Airlines Group 1 3 1 0 2.00
LATAM Airlines Group Competitors 300 1048 2150 95 2.57

LATAM Airlines Group currently has a consensus target price of $10.67, indicating a potential downside of 23.43%. As a group, “Airlines” companies have a potential downside of 12.58%. Given LATAM Airlines Group’s competitors stronger consensus rating and higher possible upside, analysts plainly believe LATAM Airlines Group has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

3.2% of LATAM Airlines Group shares are held by institutional investors. Comparatively, 78.9% of shares of all “Airlines” companies are held by institutional investors. 7.9% of LATAM Airlines Group shares are held by company insiders. Comparatively, 5.5% of shares of all “Airlines” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

LATAM Airlines Group competitors beat LATAM Airlines Group on 10 of the 14 factors compared.

LATAM Airlines Group Company Profile

LATAM Airlines Group SA is a Chile-based company, which is engaged in passenger and cargo air transportation, both in the domestic markets of Chile, Peru, Argentina, Colombia, Ecuador and Brazil and in a developed series of regional and international routes in America, Europe and Oceania. These businesses are performed directly or through its subsidiaries in different countries. It operates through two segments: the Air transportation business and the Coalition and loyalty program Multiplus. It Air transportation segment corresponds to the route network for air transport. Its segment of Coalition and loyalty program called Multiplus is a frequent flyer programs, which operate as a unilateral system of loyalty that offers a flexible coalition system. The Company operates a fleet of over 329 aircrafts. Its passenger aircrafts include Airbus A319-100, Airbus A350-900, Boeing 767-300ER, Boeing 787-8, Boeing 787-9 and Boeing 777-300ER.

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