Alaska Air Group (NYSE: ALK) is one of 31 publicly-traded companies in the “Airlines” industry, but how does it contrast to its competitors? We will compare Alaska Air Group to similar businesses based on the strength of its risk, dividends, earnings, institutional ownership, valuation, analyst recommendations and profitability.

Earnings & Valuation

This table compares Alaska Air Group and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Alaska Air Group $6.94 billion $1.84 billion 11.85
Alaska Air Group Competitors $8.56 billion $1.61 billion -88.51

Alaska Air Group’s competitors have higher revenue, but lower earnings than Alaska Air Group. Alaska Air Group is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Alaska Air Group pays an annual dividend of $1.20 per share and has a dividend yield of 1.6%. 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 1.9% and pay out 33.5% of their earnings in the form of a dividend. Alaska Air Group has raised its dividend for 3 consecutive years.

Profitability

This table compares Alaska Air Group and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alaska Air Group 11.02% 30.04% 9.14%
Alaska Air Group Competitors 3.58% 9.88% 3.39%

Risk and Volatility

Alaska Air Group has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Alaska Air Group’s competitors have a beta of 1.20, suggesting that their average stock price is 20% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Alaska Air Group and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alaska Air Group 0 2 7 0 2.78
Alaska Air Group Competitors 314 1127 2163 104 2.55

Alaska Air Group presently has a consensus price target of $105.00, suggesting a potential upside of 43.84%. As a group, “Airlines” companies have a potential downside of 6.17%. Given Alaska Air Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Alaska Air Group is more favorable than its competitors.

Institutional & Insider Ownership

87.8% of Alaska Air Group shares are held by institutional investors. Comparatively, 78.9% of shares of all “Airlines” companies are held by institutional investors. 0.6% of Alaska Air Group shares are held by company insiders. Comparatively, 5.5% of shares of all “Airlines” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Alaska Air Group beats its competitors 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.

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