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

Analyst Recommendations

This is a summary of current ratings and price targets for LATAM Airlines Group and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LATAM Airlines Group 1 5 1 0 2.00
LATAM Airlines Group Competitors 313 1118 2158 103 2.56

LATAM Airlines Group presently has a consensus price target of $10.67, indicating a potential downside of 21.22%. As a group, “Airlines” companies have a potential downside of 5.92%. Given LATAM Airlines Group’s peers stronger consensus rating and higher possible upside, analysts clearly believe LATAM Airlines Group has less favorable growth aspects than its peers.

Risk & Volatility

LATAM Airlines Group has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500. Comparatively, LATAM Airlines Group’s peers have a beta of 1.20, meaning that their average share price is 20% more volatile than the S&P 500.

Dividends

LATAM Airlines Group pays an annual dividend of $0.02 per share and has a dividend yield of 0.1%. LATAM Airlines Group pays out -199.8% 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 LATAM Airlines Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LATAM Airlines Group -0.14% -0.16% -0.03%
LATAM Airlines Group Competitors 3.54% 9.92% 3.44%

Insider & Institutional Ownership

3.2% of LATAM Airlines Group shares are held by institutional investors. Comparatively, 79.0% of shares of all “Airlines” companies are held by institutional investors. 7.9% of LATAM Airlines Group shares are held by insiders. Comparatively, 5.5% of shares of all “Airlines” companies are held by 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.

Valuation & Earnings

This table compares LATAM Airlines Group and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
LATAM Airlines Group $9.29 billion $1.41 billion -1,352.65
LATAM Airlines Group Competitors $8.57 billion $1.56 billion -91.88

LATAM Airlines Group has higher revenue, but lower earnings than its peers. LATAM Airlines Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

LATAM Airlines Group peers beat LATAM Airlines Group on 10 of the 14 factors compared.

LATAM Airlines Group Company Profile

LATAM Airlines Group S.A. is a Chile-based company, which is engaged in passenger and cargo air transportation, both in the domestic markets of Chile, Peru, Argentina, Colombia, Ecuador and Brazil and in a developed series of regional and international routes in America, Europe and Oceania. These businesses are performed directly or through its subsidiaries in different countries. It operates through two segments: the air transportation business, and the coalition and loyalty program Multiplus. It Air transport segment corresponds to the route network for air transport. Its segment of loyalty coalition called Multiplus is a frequent flyer programs, which operate as a unilateral system of loyalty that offers a flexible coalition system. As of December 31, 2016, the Company operated a fleet of over 329 aircraft. Its passenger aircraft include Airbus A319-100, Airbus A350-900, Boeing 767-300ER, Boeing 787-8, Boeing 787-9 and Boeing 777-300ER.

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