Head-To-Head Review: Grupo Aeroméxico (OTCMKTS:GRPAF) versus Allegiant Travel (NASDAQ:ALGT)

Grupo Aeroméxico (OTCMKTS:GRPAF) and Allegiant Travel (NASDAQ:ALGT) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Grupo Aeroméxico and Allegiant Travel, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Aeroméxico	0	0	0	0	0.00
Allegiant Travel	1	5	9	0	2.53

Allegiant Travel has a consensus price target of $127.00, suggesting a potential upside of 49.82%. Given Allegiant Travel’s stronger consensus rating and higher probable upside, analysts plainly believe Allegiant Travel is more favorable than Grupo Aeroméxico.

Earnings & Valuation

This table compares Grupo Aeroméxico and Allegiant Travel”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Aeroméxico	N/A	N/A	N/A	N/A	N/A
Allegiant Travel	$2.61 billion	0.89	-$44.70 million	$1.41	60.12

Grupo Aeroméxico has higher earnings, but lower revenue than Allegiant Travel.

Institutional & Insider Ownership

85.8% of Allegiant Travel shares are owned by institutional investors. 12.8% of Allegiant Travel shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Grupo Aeroméxico and Allegiant Travel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Aeroméxico	N/A	N/A	N/A
Allegiant Travel	0.90%	12.69%	3.08%

Summary

Allegiant Travel beats Grupo Aeroméxico on 9 of the 9 factors compared between the two stocks.

About Grupo Aeroméxico

Grupo Aeroméxico, S.A.B. de C.V., through its subsidiaries, provides commercial aviation services for passengers and cargo. It provides services to 43 destinations in Mexico and 42 international destinations from Mexico. The company also promotes passenger loyalty programs. As of July 19, 2019, it had a fleet of 122 airplanes that include Boeing 787 and 737 jet airliners and Embraer 170 and 190 models. The company was founded in 1934 and is headquartered in Mexico City, Mexico.

About Allegiant Travel

Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited-frequency, nonstop flights between under-served cities and leisure destinations. As of February 1, 2024, it operated a fleet of 126 Airbus A320 series aircraft. The company also provides air-related services and products in conjunction with air transportation, including baggage fees, advance seat assignments, travel protection products, priority boarding, a customer convenience fee, food and beverage purchases on board, and other air-related services, as well as use of its call center for purchases. In addition, it offers third party travel products, such as hotel rooms and ground transportation, such as rental cars and hotel shuttle products; and air transportation services through fixed fee agreements and charter service on a year-round and ad-hoc basis. Further, the company operates a golf course. Allegiant Travel Company was founded in 1997 and is based in Las Vegas, Nevada.