China Southern Airlines (NYSE: ZNH) is one of 27 public companies in the “Airlines” industry, but how does it weigh in compared to its peers? We will compare China Southern Airlines to related businesses based on the strength of its institutional ownership, earnings, profitability, dividends, risk, valuation and analyst recommendations.

Valuation & Earnings

This table compares China Southern Airlines and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
China Southern Airlines $17.31 billion $759.12 million 14.53
China Southern Airlines Competitors $9.83 billion $754.70 million 338.99

China Southern Airlines has higher revenue and earnings than its peers. China Southern Airlines is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

China Southern Airlines has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, China Southern Airlines’ peers have a beta of 1.22, indicating that their average stock price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for China Southern Airlines and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Southern Airlines 1 0 0 0 1.00
China Southern Airlines Competitors 324 1117 2226 103 2.56

As a group, “Airlines” companies have a potential downside of 23.00%. Given China Southern Airlines’ peers stronger consensus rating and higher probable upside, analysts clearly believe China Southern Airlines has less favorable growth aspects than its peers.

Profitability

This table compares China Southern Airlines and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Southern Airlines N/A N/A N/A
China Southern Airlines Competitors 5.36% 21.51% 6.77%

Insider & Institutional Ownership

0.5% of China Southern Airlines shares are owned by institutional investors. Comparatively, 77.5% of shares of all “Airlines” companies are owned by institutional investors. 6.1% of shares of all “Airlines” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

China Southern Airlines pays an annual dividend of $0.64 per share and has a dividend yield of 1.2%. China Southern Airlines pays out 17.6% of its earnings in the form of a dividend. As a group, “Airlines” companies pay a dividend yield of 1.6% and pay out 25.9% of their earnings in the form of a dividend. China Southern Airlines has raised its dividend for 2 consecutive years.

Summary

China Southern Airlines peers beat China Southern Airlines on 12 of the 15 factors compared.

About China Southern Airlines

China Southern Airlines Company Limited is principally engaged in the operation of civil aviation, including the provision of passenger, cargo, mail delivery and other extended transportation services. The Company operates through two business segments, including Airline Transportation segment and Other segment. Airline Transportation segment consist of passenger and cargo and mail operations. Other segment includes hotel and tour operation, ground services, cargo handling and other miscellaneous services. . The Company also provides services of general aviation and aircraft maintenance. The Company acts as an agency of domestic and foreign airlines, and other aviation and related business, such as personal accident insurance and agency business.

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