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

Insider and Institutional Ownership

2.8% of Avianca Holdings shares are owned by institutional investors. Comparatively, 78.9% of shares of all “Airlines” companies are owned by institutional investors. 5.5% of shares of all “Airlines” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Avianca Holdings and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Avianca Holdings $4.33 billion $555.92 million 10.03
Avianca Holdings Competitors $8.60 billion $1.61 billion -87.09

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.

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 3.83% 10.64% 3.56%

Analyst Ratings

This is a summary of current ratings for Avianca Holdings and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avianca Holdings 1 3 0 0 1.75
Avianca Holdings Competitors 301 1049 2150 95 2.57

Avianca Holdings currently has a consensus target price of $9.00, suggesting a potential upside of 18.11%. As a group, “Airlines” companies have a potential downside of 14.66%. Given Avianca Holdings’ higher possible upside, analysts plainly believe Avianca Holdings is more favorable than its competitors.

Dividends

Avianca Holdings pays an annual dividend of $0.09 per share and has a dividend yield of 1.2%. 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 33.6% of their earnings in the form of a dividend.

Volatility and Risk

Avianca Holdings has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Avianca Holdings’ competitors have a beta of 1.20, suggesting that their average share price is 20% more volatile than the S&P 500.

Summary

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

Avianca Holdings Company Profile

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.

Receive News & Ratings for Avianca Holdings S.A. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Avianca Holdings S.A. and related companies with MarketBeat.com's FREE daily email newsletter.