Allegiant Travel (NASDAQ: ALGT) and Republic Airways (OTCMKTS:RJETQ) are both transportation companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Allegiant Travel and Republic Airways’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allegiant Travel 10.52% 32.19% 8.51%
Republic Airways -127.81% -1,049.84% -43.36%

Institutional & Insider Ownership

86.2% of Allegiant Travel shares are owned by institutional investors. 21.0% of Allegiant Travel shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Allegiant Travel pays an annual dividend of $2.80 per share and has a dividend yield of 1.9%. Republic Airways does not pay a dividend. Allegiant Travel pays out 30.1% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Allegiant Travel and Republic Airways’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allegiant Travel $1.36 billion 1.73 $219.59 million $9.31 15.79
Republic Airways N/A N/A N/A ($13.48) 0.00

Allegiant Travel has higher revenue and earnings than Republic Airways. Republic Airways is trading at a lower price-to-earnings ratio than Allegiant Travel, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Allegiant Travel and Republic Airways, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allegiant Travel 1 9 2 0 2.08
Republic Airways 0 0 0 0 N/A

Allegiant Travel currently has a consensus price target of $145.20, suggesting a potential downside of 1.22%. Given Allegiant Travel’s higher probable upside, equities analysts plainly believe Allegiant Travel is more favorable than Republic Airways.

Volatility and Risk

Allegiant Travel has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500. Comparatively, Republic Airways has a beta of 3.56, suggesting that its stock price is 256% more volatile than the S&P 500.

Summary

Allegiant Travel beats Republic Airways on 10 of the 12 factors compared between the two stocks.

About Allegiant Travel

Allegiant Travel Company is a leisure travel company. The Company is focused on providing travel services and products to residents of under-served cities in the United States. It also provides air transportation under fixed fee flying arrangements. The Company’s products and services include scheduled service air transportation, air-related ancillary products and services, third-party ancillary products and services and fixed fee contract air transportation. Its scheduled service air transportation includes scheduled air transportation on limited-frequency non-stop flights between under-served cities and leisure destinations. As of February 1, 2017, its operating fleet consisted of 47 MD-80 aircraft, 34 Airbus A320 series aircraft, and four Boeing 757-200 aircraft, and it was selling travel on 377 routes to 119 cities. The Company’s air-related ancillary products and services include providing unbundled air-related services and products in conjunction with air transportation.

About Republic Airways

Republic Airways Holdings Inc. is a holding company. The Company offers scheduled passenger services through its operating air carrier subsidiaries, Shuttle America Corporation (Shuttle) and Republic Airline Inc. (Republic). The Company’s subsidiaries offer scheduled passenger service on approximately 1,090 flights daily to approximately 120 cities in over 40 states and Canada under scheduled passenger service through its fixed-fee code-share agreements with United Continental Holdings, Inc. (United), Delta Air Lines, Inc. (Delta), and American Airlines Group, Inc. (American). The Company provides its partners with fixed-fee regional airline services, operating as United Express, Delta Connection, or American Eagle, including service out of their hubs and focus cities. It provides approximately 550 flights per day as American Eagle. It provides approximately 250 flights per day as Delta Connection. It provides approximately 300 flights per day as United Express.

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