Spirit Airlines (NASDAQ: SAVE) is one of 31 public companies in the “Airlines” industry, but how does it weigh in compared to its competitors? We will compare Spirit Airlines to similar companies based off the strength of its valuation, earnings, analyst recommendations, profitability, risk, institutional ownership and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Spirit Airlines 9.62% 17.96% 7.61%
Spirit Airlines Competitors 3.52% 10.27% 3.60%

Volatility and Risk

Spirit Airlines has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Spirit Airlines’ competitors have a beta of 1.20, indicating that their average share price is 20% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Spirit Airlines and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spirit Airlines 0 5 7 0 2.58
Spirit Airlines Competitors 310 1114 2147 103 2.56

Spirit Airlines currently has a consensus target price of $50.80, suggesting a potential upside of 53.47%. All “Airlines” companies have a potential downside of 7.02%. Given Spirit Airlines’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Spirit Airlines is more favorable than its competitors.

Insider & Institutional Ownership

97.0% of Spirit Airlines shares are owned by institutional investors. Comparatively, 79.0% of shares of all “Airlines” companies are owned by institutional investors. 0.3% of Spirit Airlines shares are owned by company insiders. Comparatively, 5.5% of shares of all “Airlines” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Spirit Airlines $2.49 billion $509.32 million 9.59
Spirit Airlines Competitors $8.51 billion $1.60 billion -87.83

Spirit Airlines’ competitors have higher revenue and earnings than Spirit Airlines. Spirit Airlines is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently the more expensive than other companies in its industry.

Summary

Spirit Airlines beats its competitors on 7 of the 13 factors compared.

Spirit Airlines Company Profile

Spirit Airlines, Inc. is an airline company. The Company provides air transportation for passengers. As of December 31, 2016, its all-Airbus Fit Fleet operated over 420 daily flights to 59 destinations in the United States, Caribbean and Latin America. As of December 31, 2016, it had a fleet of 95 Airbus single-aisle aircraft, which are referred to as A320 family aircraft and include the A319, A320 and A321 models, which have common design and equipment but differ most notably in fuselage length, service range and seat capacity. As of December 31, 2016, its fleet consisted of 29 A319s, 45 A320ceos, five A320neos and 16 A321ceos. Its Bare Fares offerings are unbundled base fares that remove components included in the price of an airline ticket. It also offers Frill Control, which allows customers to pay only for the options they choose, such as bags, advance seat assignments and refreshments. As of December 31, 2016, its route network included 200 markets served by 59 airports.

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