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

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Avianca Holdings $4.33 billion $555.92 million 10.79
Avianca Holdings Competitors $8.57 billion $1.56 billion -91.88

Avianca Holdings’ competitors have higher revenue and earnings than Avianca Holdings. Avianca Holdings 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.

Dividends

Avianca Holdings pays an annual dividend of $0.09 per share and has a dividend yield of 1.1%. Avianca Holdings pays out 11.8% of its earnings in the form of a dividend. As a group, “Airlines” companies pay a dividend yield of 1.8% and pay out 34.4% of their earnings in the form of a dividend.

Profitability

This table compares Avianca Holdings and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avianca Holdings 2.20% 13.27% 1.81%
Avianca Holdings Competitors 3.54% 9.92% 3.44%

Institutional & Insider Ownership

2.8% of Avianca Holdings shares are held by institutional investors. Comparatively, 79.0% of shares of all “Airlines” companies are held by institutional investors. 5.5% of shares of all “Airlines” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Avianca Holdings has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Avianca Holdings’ 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 breakdown of current ratings and target prices for Avianca Holdings and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avianca Holdings 1 3 0 0 1.75
Avianca Holdings Competitors 313 1120 2158 103 2.56

Avianca Holdings presently has a consensus target price of $9.00, suggesting a potential upside of 9.76%. As a group, “Airlines” companies have a potential downside of 5.95%. Given Avianca Holdings’ higher probable upside, equities analysts clearly believe Avianca Holdings is more favorable than its competitors.

Summary

Avianca Holdings competitors beat Avianca Holdings on 11 of the 15 factors compared.

About Avianca Holdings

Avianca Holdings SA is a Panama-based company engaged, through its subsidiaries, in the provision of air transportation services for passengers and commercial purposes. The Company was originally established as a strategic alliance between Aerovias del Continente Americano SA (AVIANCA) and Grupo TACA Holdings Limited (GTH), and it mainly operates in North, Central and South America, the Caribbean and Europe. In addition, through codeshare agreements, the Company is active in the operation of other international passenger air routes. As of December 31, 2011, the Company owned such subsidiaries as Latin Airways Corporation and LifeMiles Corporation, among others. On December 28, 2012, the merger of subsidiaries Latin Airways Corporation, as absorbing company, with Synergy Ocean Air Colombia SAS and Soac 2 SAS was formalized. On June 18, 2013, the Company received the first out of 15 ATR 72-600, a turbo-propelled aircraft from ATR, a company engaged in regional aircraft.

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