Alaska Air Group (NYSE: ALK) is one of 31 public companies in the “Airlines” industry, but how does it contrast to its rivals? We will compare Alaska Air Group to similar companies based on the strength of its analyst recommendations, valuation, institutional ownership, profitability, earnings, risk and dividends.
Institutional & Insider Ownership
87.8% of Alaska Air Group shares are owned by institutional investors. Comparatively, 78.9% of shares of all “Airlines” companies are owned by institutional investors. 0.6% of Alaska Air Group shares are owned by company insiders. Comparatively, 5.5% of shares of all “Airlines” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a summary of current ratings and target prices for Alaska Air Group and its rivals, as provided by MarketBeat.com.
Alaska Air Group presently has a consensus target price of $100.75, indicating a potential upside of 24.44%. As a group, “Airlines” companies have a potential downside of 15.08%. Given Alaska Air Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Alaska Air Group is more favorable than its rivals.
Earnings and Valuation
This table compares Alaska Air Group and its rivals top-line revenue, earnings per share and valuation.
Alaska Air Group’s rivals have higher revenue, but lower earnings than Alaska Air Group. Alaska Air Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Risk & Volatility
Alaska Air Group has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Alaska Air Group’s rivals have a beta of 1.20, meaning that their average stock price is 20% more volatile than the S&P 500.
This table compares Alaska Air Group and its rivals’ net margins, return on equity and return on assets.
Alaska Air Group pays an annual dividend of $1.20 per share and has a dividend yield of 1.5%. Alaska Air Group pays out 19.5% of its earnings in the form of a dividend. As a group, “Airlines” companies pay a dividend yield of 1.8% and pay out 33.6% of their earnings in the form of a dividend. Alaska Air Group has increased its dividend for 3 consecutive years.
Alaska Air Group beats its rivals on 10 of the 15 factors compared.
Alaska Air Group Company Profile
Alaska Air Group, Inc. is the holding company of Alaska Airlines (Alaska), Virgin America Inc., Horizon Air (Horizon) and other business units. The Company operates through three segments: Mainline, Regional and Horizon. Its Mainline segment includes Alaska’s and Virgin America’s scheduled air transportation for passengers and cargo throughout the United States, and in parts of Canada, Mexico, Costa Rica and Cuba. Its Regional segment includes Horizon’s and other third-party carriers’ scheduled air transportation for passengers across a shorter distance network within the United States under capacity purchased arrangements (CPAs). Its Horizon segment includes the capacity sold to Alaska under CPA. Alaska and Virgin America operate fleets of narrowbody passenger jets. As of December 31, 2016, it maintained two frequent flyer plans: the Alaska Airlines Mileage Plan and the Virgin America Elevate.