Delta Air Lines (NYSE: DAL) is one of 31 publicly-traded companies in the “Airlines” industry, but how does it compare to its competitors? We will compare Delta Air Lines to related companies based on the strength of its analyst recommendations, profitability, risk, earnings, dividends, valuation and institutional ownership.

Volatility and Risk

Delta Air Lines has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Delta Air Lines’ competitors have a beta of 1.20, meaning that their average stock price is 20% more volatile than the S&P 500.

Insider & Institutional Ownership

86.2% of Delta Air Lines shares are owned by institutional investors. Comparatively, 78.8% of shares of all “Airlines” companies are owned by institutional investors. 0.4% of Delta Air Lines shares are owned by insiders. Comparatively, 5.5% of shares of all “Airlines” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Delta Air Lines and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Delta Air Lines 0 0 15 0 3.00
Delta Air Lines Competitors 307 1060 2160 95 2.56

Delta Air Lines presently has a consensus target price of $64.62, suggesting a potential upside of 21.30%. As a group, “Airlines” companies have a potential downside of 13.85%. Given Delta Air Lines’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Delta Air Lines is more favorable than its competitors.

Profitability

This table compares Delta Air Lines and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Delta Air Lines 8.97% 26.50% 6.77%
Delta Air Lines Competitors 3.92% 10.72% 3.58%

Dividends

Delta Air Lines pays an annual dividend of $1.22 per share and has a dividend yield of 2.3%. Delta Air Lines pays out 24.5% of its earnings in the form of a dividend. As a group, “Airlines” companies pay a dividend yield of 1.9% and pay out 33.6% of their earnings in the form of a dividend. Delta Air Lines has raised its dividend for 3 consecutive years. Delta Air Lines is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Delta Air Lines and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Delta Air Lines $40.46 billion $7.45 billion 10.70
Delta Air Lines Competitors $8.62 billion $1.61 billion -87.04

Delta Air Lines has higher revenue and earnings than its competitors. Delta Air Lines is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Delta Air Lines beats its competitors on 13 of the 15 factors compared.

Delta Air Lines Company Profile

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo throughout the United States and across the world. The Company’s segments include Airline and Refinery. The Company’s route network is centered around a system of hub, international gateway and airports that the Company operates in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Minneapolis-St. Paul, New York-LaGuardia, New York- John F Kennedy International Airport, Paris-Charles de Gaulle, Salt Lake City, Seattle and Tokyo-Narita. Each of these operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub or gateway to domestic and international cities and to other hubs or gateways. The Company’s route network includes its international joint ventures, its alliances with other foreign airlines, its membership in SkyTeam and agreements with multiple domestic regional carriers that operate as Delta Connection.

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