Critical Comparison: Corporacion America Airports (NYSE:CAAP) vs. Ryanair (NASDAQ:RYAAY)

Ryanair (NASDAQ:RYAAY) and Corporacion America Airports (NYSE:CAAP) are both transportation companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Risk and Volatility

Ryanair has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Corporacion America Airports has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Earnings & Valuation

This table compares Ryanair and Corporacion America Airports”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ryanair	$14.98 billion	2.04	$1.73 billion	$4.98	11.74
Corporacion America Airports	$1.96 billion	2.03	$247.72 million	$1.54	15.83

Ryanair has higher revenue and earnings than Corporacion America Airports. Ryanair is trading at a lower price-to-earnings ratio than Corporacion America Airports, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ryanair and Corporacion America Airports’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ryanair	15.04%	29.76%	14.14%
Corporacion America Airports	12.59%	15.93%	5.79%

Institutional & Insider Ownership

43.7% of Ryanair shares are owned by institutional investors. Comparatively, 12.9% of Corporacion America Airports shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Ryanair and Corporacion America Airports, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ryanair	0	4	7	1	2.75
Corporacion America Airports	1	1	6	0	2.63

Ryanair presently has a consensus price target of $75.67, indicating a potential upside of 29.39%. Corporacion America Airports has a consensus price target of $26.60, indicating a potential upside of 9.14%. Given Ryanair’s stronger consensus rating and higher possible upside, research analysts clearly believe Ryanair is more favorable than Corporacion America Airports.

Summary

Ryanair beats Corporacion America Airports on 13 of the 14 factors compared between the two stocks.

About Ryanair

Ryanair Holdings plc, together with its subsidiaries, provides scheduled-passenger airline services in Ireland, the United Kingdom, Italy, Spain, and internationally. It is also involved in the provision of various ancillary services, such as non-flight scheduled and Internet-related services, as well as in-flight sale of beverages, food, duty-free, and merchandise; and markets car hire, travel insurance, and accommodation services through its website and mobile app. In addition, the company offers aircraft and passenger handling, ticketing, and maintenance and repair services; and markets car parking, fast-track, airport transfers, attractions, and activities on its website and mobile app, as well as sells gift vouchers. Ryanair Holdings plc was incorporated in 1996 and is headquartered in Swords, Ireland.

About Corporacion America Airports

Corporación América Airports S.A., through its subsidiaries, acquires, develops, and operates airport concessions. It operates 52 airports in Latin America, Europe, and Eurasia. The company was formerly known as A.C.I. Airports International S.à r.l. and changed its name to Corporación América Airports S.A. in September 2017. The company was founded in 1998 and is based in Luxembourg City, Luxembourg. Corporación América Airports S.A. is a subsidiary of A.C.I. Airports S.à r.l.