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

Analyst Ratings

This is a summary of recent ratings for LATAM Airlines Group and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LATAM Airlines Group 1 3 1 0 2.00
LATAM Airlines Group Competitors 294 1037 2143 95 2.57

LATAM Airlines Group presently has a consensus price target of $10.67, indicating a potential downside of 23.37%. As a group, “Airlines” companies have a potential downside of 11.29%. Given LATAM Airlines Group’s rivals stronger consensus rating and higher possible upside, analysts clearly believe LATAM Airlines Group has less favorable growth aspects than its rivals.

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 33.5% of their earnings in the form of a dividend.

Profitability

This table compares LATAM Airlines Group and its rivals’ 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 3.84% 10.71% 3.57%

Volatility and Risk

LATAM Airlines Group has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500. Comparatively, LATAM Airlines Group’s rivals have a beta of 1.20, suggesting that their average stock price is 20% more volatile than the S&P 500.

Insider and Institutional Ownership

3.2% of LATAM Airlines Group shares are held by institutional investors. Comparatively, 78.9% 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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
LATAM Airlines Group $9.29 billion $1.41 billion -1,390.61
LATAM Airlines Group Competitors $8.61 billion $1.57 billion -88.01

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

Summary

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

About LATAM Airlines Group

LATAM Airlines Group SA 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 transportation segment corresponds to the route network for air transport. Its segment of Coalition and loyalty program called Multiplus is a frequent flyer programs, which operate as a unilateral system of loyalty that offers a flexible coalition system. The Company operates a fleet of over 329 aircrafts. Its passenger aircrafts include Airbus A319-100, Airbus A350-900, Boeing 767-300ER, Boeing 787-8, Boeing 787-9 and Boeing 777-300ER.

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