Delta Air Lines (DAL) versus US Airways Group (LCC) Critical Review
Delta Air Lines (NYSE: DAL) and US Airways Group (NYSE:LCC) are both transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.
This table compares Delta Air Lines and US Airways Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Delta Air Lines||8.97%||26.50%||6.77%|
|US Airways Group||N/A||N/A||N/A|
Delta Air Lines pays an annual dividend of $1.22 per share and has a dividend yield of 2.4%. US Airways Group does not pay a dividend. Delta Air Lines pays out 24.5% of its earnings in the form of a dividend. US Airways Group has raised its dividend for 3 consecutive years.
Insider & Institutional Ownership
87.7% of Delta Air Lines shares are owned by institutional investors. 0.4% of Delta Air Lines shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and target prices for Delta Air Lines and US Airways Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Delta Air Lines||0||0||15||0||3.00|
|US Airways Group||0||0||0||0||N/A|
Delta Air Lines currently has a consensus price target of $64.62, suggesting a potential upside of 27.80%. Given Delta Air Lines’ higher probable upside, research analysts plainly believe Delta Air Lines is more favorable than US Airways Group.
Valuation & Earnings
This table compares Delta Air Lines and US Airways Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Delta Air Lines||$40.46 billion||0.89||$7.45 billion||$4.98||10.15|
|US Airways Group||N/A||N/A||N/A||N/A||N/A|
Delta Air Lines has higher revenue and earnings than US Airways Group.
Delta Air Lines beats US Airways Group on 9 of the 11 factors compared between the two stocks.
Delta Air Lines Company Profile
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.
US Airways Group Company Profile
US Airways Group, Inc. (US Airways Group) is a holding company whose primary business activity is the operation of a network air carrier through its wholly owned subsidiaries US Airways, Piedmont Airlines, Inc. (Piedmont), PSA Airlines, Inc. (PSA), Material Services Company, Inc. (MSC) and Airways Assurance Limited (AAL). MSC and AAL operate in support of its airline subsidiaries in areas, such as the procurement of aviation fuel and insurance. Effective December 9, 2013, AMR Corp merged with US Airways Group Inc.
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