China Southern Airlines (NYSE: ZNH) is one of 27 public companies in the “Airlines” industry, but how does it compare to its peers? We will compare China Southern Airlines to related companies based on the strength of its risk, dividends, valuation, earnings, analyst recommendations, profitability and institutional ownership.

Volatility and Risk

China Southern Airlines has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, China Southern Airlines’ peers have a beta of 1.23, indicating that their average stock price is 23% more volatile than the S&P 500.

Earnings & Valuation

This table compares China Southern Airlines and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
China Southern Airlines $17.31 billion $759.12 million 12.63
China Southern Airlines Competitors $9.83 billion $754.70 million 325.65

China Southern Airlines has higher revenue and earnings than its peers. China Southern Airlines is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

0.5% of China Southern Airlines shares are held by institutional investors. Comparatively, 77.6% of shares of all “Airlines” companies are held by institutional investors. 6.1% 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.

Dividends

China Southern Airlines pays an annual dividend of $0.64 per share and has a dividend yield of 1.4%. China Southern Airlines pays out 17.7% of its earnings in the form of a dividend. As a group, “Airlines” companies pay a dividend yield of 1.6% and pay out 25.6% of their earnings in the form of a dividend. China Southern Airlines has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations for China Southern Airlines and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Southern Airlines 1 0 0 0 1.00
China Southern Airlines Competitors 323 1107 2212 102 2.56

As a group, “Airlines” companies have a potential downside of 7.54%. Given China Southern Airlines’ peers stronger consensus rating and higher possible upside, analysts clearly believe China Southern Airlines has less favorable growth aspects than its peers.

Profitability

This table compares China Southern Airlines and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Southern Airlines N/A N/A N/A
China Southern Airlines Competitors 4.24% 16.96% 5.74%

Summary

China Southern Airlines peers beat China Southern Airlines on 11 of the 14 factors compared.

China Southern Airlines Company Profile

China Southern Airlines Company Limited is principally engaged in the operation of civil aviation, including the provision of passenger, cargo, mail delivery and other extended transportation services. The Company operates through two business segments, including Airline Transportation segment and Other segment. Airline Transportation segment consist of passenger and cargo and mail operations. Other segment includes hotel and tour operation, ground services, cargo handling and other miscellaneous services. . The Company also provides services of general aviation and aircraft maintenance. The Company acts as an agency of domestic and foreign airlines, and other aviation and related business, such as personal accident insurance and agency business.

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