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

Insider and Institutional Ownership

97.0% of Spirit Airlines shares are held by institutional investors. Comparatively, 78.9% of shares of all “Airlines” companies are held by institutional investors. 0.3% of Spirit Airlines shares are held by company insiders. Comparatively, 5.5% of shares of all “Airlines” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Spirit Airlines and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Spirit Airlines $2.49 billion $509.32 million 9.48
Spirit Airlines Competitors $8.56 billion $1.61 billion -88.51

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

Volatility & Risk

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Spirit Airlines and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spirit Airlines 0 6 5 0 2.45
Spirit Airlines Competitors 314 1127 2163 104 2.55

Spirit Airlines currently has a consensus target price of $49.44, suggesting a potential upside of 51.21%. As a group, “Airlines” companies have a potential downside of 5.89%. Given Spirit Airlines’ higher probable upside, analysts clearly believe Spirit Airlines is more favorable than its peers.

Profitability

This table compares Spirit Airlines and its peers’ 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 3.58% 9.88% 3.39%

Summary

Spirit Airlines peers beat Spirit Airlines 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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