Contrasting LATAM Airlines Group (OTCMKTS:LTMAQ) and Deutsche Lufthansa (OTCMKTS:DLAKY)

LATAM Airlines Group (OTCMKTS:LTMAQ) and Deutsche Lufthansa (OTCMKTS:DLAKY) are both transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.

Volatility and Risk

LATAM Airlines Group has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500. Comparatively, Deutsche Lufthansa has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Valuation & Earnings

This table compares LATAM Airlines Group and Deutsche Lufthansa’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LATAM Airlines Group $3.92 billion 0.27 -$4.55 billion N/A N/A
Deutsche Lufthansa $15.52 billion 0.40 -$7.68 billion ($14.29) -0.72

LATAM Airlines Group has higher earnings, but lower revenue than Deutsche Lufthansa.

Profitability

This table compares LATAM Airlines Group and Deutsche Lufthansa’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LATAM Airlines Group -94.87% N/A -17.36%
Deutsche Lufthansa -44.35% -198.47% -12.53%

Analyst Ratings

This is a summary of recent ratings and target prices for LATAM Airlines Group and Deutsche Lufthansa, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LATAM Airlines Group 0 1 0 0 2.00
Deutsche Lufthansa 9 2 0 0 1.18

Deutsche Lufthansa has a consensus price target of $11.96, indicating a potential upside of 16.23%. Given Deutsche Lufthansa’s higher probable upside, analysts clearly believe Deutsche Lufthansa is more favorable than LATAM Airlines Group.

Insider and Institutional Ownership

0.0% of LATAM Airlines Group shares are owned by institutional investors. Comparatively, 0.1% of Deutsche Lufthansa shares are owned by institutional investors. 7.8% of LATAM Airlines Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

LATAM Airlines Group Company Profile

LATAM Airlines Group SA is holding company, which engages in the provision of passenger air transportation and cargo services. The Air Transportation segment corresponds to the route network for air transport. The Multiplus Coalition and Loyalty Program segment offers a coalition system, interrelated among its members, along with being a government entity with a separately business and not directly related to air transport. The company was founded in 1929 and is headquartered in Las Condes, Chile.

Deutsche Lufthansa Company Profile

Deutsche Lufthansa AG engages in the provision of passenger, freight, and cargo airline services. It operates through the following segments: Network Airlines, Eurowings, Logistics, Maintenance Repair Overhaul, Catering and Additional Businesses and Group Functions. The Network Airlines segment comprises Lufthansa German Airlines, SWISS, and Austrian Airlines. The Eurowings segment focuses on the growing market for european direct sales. The Logistics segment consists of scheduled airfreight activities of the Lufthansa Cargo group. The Maintenance Repair Overhaul segment is involved in the provision of maintenance, repair, and overhaul services for civilian commercial aircraft. The Catering segment is engaged in providing airline catering. The company was founded on January 6, 1926 and is headquartered in Cologne, Germany.

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