Grupo Aeroportuario Del Pacifico (NYSE:PAC) vs. Corporacion America Airports (NYSE:CAAP) Critical Review

Corporacion America Airports (NYSE:CAAP) and Grupo Aeroportuario Del Pacifico (NYSE:PAC) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, dividends, risk and analyst recommendations.

Dividends

Corporacion America Airports pays an annual dividend of $0.91 per share and has a dividend yield of 3.6%. Grupo Aeroportuario Del Pacifico pays an annual dividend of $10.05 per share and has a dividend yield of 4.2%. Corporacion America Airports pays out 51.1% of its earnings in the form of a dividend. Grupo Aeroportuario Del Pacifico pays out 89.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Corporacion America Airports has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Grupo Aeroportuario Del Pacifico has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Corporacion America Airports and Grupo Aeroportuario Del Pacifico, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corporacion America Airports	1	1	3	0	2.40
Grupo Aeroportuario Del Pacifico	0	5	4	0	2.44

Corporacion America Airports presently has a consensus price target of $30.50, suggesting a potential upside of 22.24%. Grupo Aeroportuario Del Pacifico has a consensus price target of $259.00, suggesting a potential upside of 7.27%. Given Corporacion America Airports’ higher probable upside, analysts plainly believe Corporacion America Airports is more favorable than Grupo Aeroportuario Del Pacifico.

Institutional and Insider Ownership

13.0% of Corporacion America Airports shares are held by institutional investors. Comparatively, 11.7% of Grupo Aeroportuario Del Pacifico shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Corporacion America Airports and Grupo Aeroportuario Del Pacifico’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corporacion America Airports	13.58%	16.69%	6.33%
Grupo Aeroportuario Del Pacifico	24.68%	26.16%	9.21%

Earnings and Valuation

This table compares Corporacion America Airports and Grupo Aeroportuario Del Pacifico”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corporacion America Airports	$1.96 billion	2.10	$247.72 million	$1.78	14.02
Grupo Aeroportuario Del Pacifico	$2.16 billion	5.65	$499.30 million	$11.24	21.48

Grupo Aeroportuario Del Pacifico has higher revenue and earnings than Corporacion America Airports. Corporacion America Airports is trading at a lower price-to-earnings ratio than Grupo Aeroportuario Del Pacifico, indicating that it is currently the more affordable of the two stocks.

Summary

Grupo Aeroportuario Del Pacifico beats Corporacion America Airports on 12 of the 15 factors compared between the two stocks.

About Corporacion America Airports

Corporación América Airports S.A. is an airport operator that develops, manages and operates airport concessions. Its services include airport operations and maintenance, passenger and cargo facilities, and commercial activities such as retail, food service, parking and other offerings for travelers and airport users. The company’s operations span Latin America and Europe, including Argentina, Uruguay, Ecuador, Armenia and Italy. Its portfolio includes airports serving major cities as well as regional destinations, with revenue-generating activities both directly related to aviation and tied to airport retail and other services.

About Grupo Aeroportuario Del Pacifico

Grupo Aeroportuario del Pacífico (GAP) is a Mexican airport operator that develops, maintains and manages airport infrastructure under government concessions. Its services include passenger and aircraft operations, as well as commercial offerings such as retail, food and beverage, parking and car rental. GAP operates 12 airports in Mexico, including those serving Guadalajara, Tijuana, Puerto Vallarta and Los Cabos. It also operates Sangster International Airport in Montego Bay, Jamaica, giving the company a presence in both Mexico and the Caribbean.