Air T (NASDAQ:AIRT) and Air Transport Services Group (NASDAQ:ATSG) are both small-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.
Institutional & Insider Ownership
27.3% of Air T shares are owned by institutional investors. Comparatively, 87.3% of Air Transport Services Group shares are owned by institutional investors. 50.3% of Air T shares are owned by company insiders. Comparatively, 2.1% of Air Transport Services Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Air T and Air Transport Services Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Air T||$194.52 million||0.39||$2.27 million||N/A||N/A|
|Air Transport Services Group||$1.07 billion||1.06||$18.49 million||$0.90||21.37|
Air Transport Services Group has higher revenue and earnings than Air T.
This is a breakdown of recent ratings for Air T and Air Transport Services Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Air Transport Services Group||0||1||4||0||2.80|
Air Transport Services Group has a consensus price target of $25.80, suggesting a potential upside of 34.17%. Given Air Transport Services Group’s higher probable upside, analysts clearly believe Air Transport Services Group is more favorable than Air T.
This table compares Air T and Air Transport Services Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Air Transport Services Group||18.06%||19.89%||5.50%|
Risk and Volatility
Air T has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Air Transport Services Group has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500.
Air Transport Services Group beats Air T on 11 of the 12 factors compared between the two stocks.
About Air T
Air T, Inc., together with its subsidiaries, provides overnight air cargo, ground equipment sale, and ground support services in the United States and internationally. The company's Overnight Air Cargo segment offers air express delivery services. As of March 31, 2018, this segment had 79 aircrafts under the dry-lease agreements with FedEx. Its Ground Equipment Sales segment manufactures, sells, and services aircraft deicers, scissor-type lifts, military and civilian decontamination units, flight-line tow tractors, glycol recovery vehicles, and other specialized equipment. This segment offers its products to passenger and cargo airlines, ground handling companies, the United States Air Force, airports, and industrial customers. The company's Ground Support Services segment provides aircraft ground support equipment, fleet, and facility maintenance services to airlines and aviation service providers. Its Leasing segment provides funding for equipment leasing transactions for the leasing of equipment manufactured by the company and third parties. The company's Printing Equipment and Maintenance segment designs, manufactures, and sells digital print production equipment, spare parts, supplies, and consumable items, as well as provides maintenance contracts. Its Commercial Jet Engines and Parts segment supplies commercial jet engines and components for airlines and original equipment manufacturers, as well as for maintenance, repair, and overhaul service providers. This segment also offers commercial aircraft storage, storage maintenance, and aircraft disassembly/part-out services; commercial aircraft parts, exchanges, procurement services, consignment programs, and overhaul and repair services; and aircraft instrumentation, avionics, and a range of accessories for civilian, military transport, regional/commuter and business/commercial jet, and turboprop aircraft. Air T, Inc. was founded in 1980 and is headquartered in Denver, North Carolina.
About Air Transport Services Group
Air Transport Services Group, Inc., through its subsidiaries, operates in the airfreight and logistics industry. The company owns and leases cargo aircraft to airlines and other customers. It also provides airline operations to delivery companies, airlines, freight forwarders, and the U.S. Military, as well as operates charter agreements. In addition, the company offers mail and package sorting services, as well as related maintenance services for material handling equipment, ground equipment, and facilities; airframe modification and maintenance, component repair, engineering, and aircraft line maintenance services; and flight crew training, air dispatch, and flight monitoring services. Further, it rents ground equipment and sells aviation fuel; and resells and brokers aircraft parts. As of December 31, 2017, the company owned a fleet of 70 serviceable Boeing 767, 757, and 737 cargo aircraft. The company, formerly known as ABX Holdings, Inc., was founded in 1980 and is headquartered in Wilmington, Ohio.
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