Delta Air Lines (DAL) and The Competition Head to Head Analysis
Delta Air Lines (NYSE: DAL) is one of 31 publicly-traded companies in the “Airlines” industry, but how does it contrast to its competitors? We will compare Delta Air Lines to related companies based on the strength of its institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.
Delta Air Lines pays an annual dividend of $1.22 per share and has a dividend yield of 2.5%. Delta Air Lines pays out 24.3% of its earnings in the form of a dividend. As a group, “Airlines” companies pay a dividend yield of 1.9% and pay out 33.5% of their earnings in the form of a dividend. Delta Air Lines has raised its dividend for 3 consecutive years. Delta Air Lines is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
This table compares Delta Air Lines and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Delta Air Lines||9.30%||28.33%||7.06%|
|Delta Air Lines Competitors||3.58%||9.88%||3.39%|
Insider & Institutional Ownership
86.3% of Delta Air Lines shares are owned by institutional investors. Comparatively, 78.9% of shares of all “Airlines” companies are owned by institutional investors. 0.4% of Delta Air Lines shares are owned by insiders. Comparatively, 5.4% of shares of all “Airlines” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Delta Air Lines has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Delta Air Lines’ competitors have a beta of 1.20, meaning that their average share price is 20% more volatile than the S&P 500.
Valuation and Earnings
This table compares Delta Air Lines and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Delta Air Lines||$39.88 billion||$7.48 billion||9.52|
|Delta Air Lines Competitors||$8.56 billion||$1.61 billion||-87.84|
Delta Air Lines has higher revenue and earnings than its competitors. Delta Air Lines 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.
This is a summary of current ratings for Delta Air Lines and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Delta Air Lines||0||1||15||0||2.94|
|Delta Air Lines Competitors||313||1124||2159||104||2.56|
Delta Air Lines currently has a consensus target price of $62.31, indicating a potential upside of 30.08%. As a group, “Airlines” companies have a potential downside of 7.11%. Given Delta Air Lines’ stronger consensus rating and higher probable upside, analysts clearly believe Delta Air Lines is more favorable than its competitors.
Delta Air Lines beats its competitors on 13 of the 15 factors compared.
About Delta Air Lines
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo throughout the United States and across the world. The Company’s segments include Airline and Refinery. The Company’s route network is centered around a system of hub, international gateway and airports that the Company operates in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Minneapolis-St. Paul, New York-LaGuardia, New York- John F Kennedy International Airport, Paris-Charles de Gaulle, Salt Lake City, Seattle and Tokyo-Narita. Each of these operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub or gateway to domestic and international cities and to other hubs or gateways. The Company’s route network includes its international joint ventures, its alliances with other foreign airlines, its membership in SkyTeam and agreements with multiple domestic regional carriers that operate as Delta Connection.
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