Financial Comparison: Allegiant Travel (NASDAQ:ALGT) vs. Grupo Aeroméxico (OTCMKTS:GRPAF)

Grupo Aeroméxico (OTCMKTS:GRPAF) and Allegiant Travel (NASDAQ:ALGT) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.

Profitability

This table compares Grupo Aeroméxico and Allegiant Travel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Aeroméxico	N/A	N/A	N/A
Allegiant Travel	0.90%	10.83%	2.75%

Earnings and Valuation

This table compares Grupo Aeroméxico and Allegiant Travel”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Aeroméxico	N/A	N/A	N/A	N/A	N/A
Allegiant Travel	$2.89 billion	0.76	-$44.70 million	$1.41	56.74

Grupo Aeroméxico has higher earnings, but lower revenue than Allegiant Travel.

Analyst Ratings

This is a summary of recent ratings and price targets for Grupo Aeroméxico and Allegiant Travel, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Aeroméxico	0	0	0	0	0.00
Allegiant Travel	1	4	9	1	2.67

Allegiant Travel has a consensus target price of $127.00, suggesting a potential upside of 58.75%. Given Allegiant Travel’s stronger consensus rating and higher possible upside, analysts plainly believe Allegiant Travel is more favorable than Grupo Aeroméxico.

Institutional and Insider Ownership

85.8% of Allegiant Travel shares are owned by institutional investors. 12.8% of Allegiant Travel shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Allegiant Travel beats Grupo Aeroméxico on 10 of the 10 factors compared between the two stocks.

About Grupo Aeroméxico

Grupo Aeroméxico, S.A.B. de C.V., through its subsidiaries, provides commercial aviation services for passengers and cargo. It provides services to 43 destinations in Mexico and 42 international destinations from Mexico. The company also promotes passenger loyalty programs. As of July 19, 2019, it had a fleet of 122 airplanes that include Boeing 787 and 737 jet airliners and Embraer 170 and 190 models. The company was founded in 1934 and is headquartered in Mexico City, Mexico.

About Allegiant Travel

Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited-frequency, nonstop flights between under-served cities and leisure destinations. As of February 1, 2024, it operated a fleet of 126 Airbus A320 series aircraft. The company also provides air-related services and products in conjunction with air transportation, including baggage fees, advance seat assignments, travel protection products, priority boarding, a customer convenience fee, food and beverage purchases on board, and other air-related services, as well as use of its call center for purchases. In addition, it offers third party travel products, such as hotel rooms and ground transportation, such as rental cars and hotel shuttle products; and air transportation services through fixed fee agreements and charter service on a year-round and ad-hoc basis. Further, the company operates a golf course. Allegiant Travel Company was founded in 1997 and is based in Las Vegas, Nevada.