Republic Airways (OTCMKTS: RJETQ) and Allegiant Travel (NASDAQ:ALGT) are both services companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.
Institutional and Insider Ownership
86.2% of Allegiant Travel shares are owned by institutional investors. 21.0% of Allegiant Travel shares are owned by 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.
Volatility and Risk
Republic Airways has a beta of 3.56, suggesting that its share price is 256% more volatile than the S&P 500. Comparatively, Allegiant Travel has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.
Valuation and Earnings
This table compares Republic Airways and Allegiant Travel’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Allegiant Travel||$1.36 billion||1.74||$219.59 million||$9.31||15.82|
Allegiant Travel has higher revenue and earnings than Republic Airways. Republic Airways is trading at a lower price-to-earnings ratio than Allegiant Travel, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for Republic Airways and Allegiant Travel, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Allegiant Travel has a consensus target price of $145.20, indicating a potential downside of 1.43%. Given Allegiant Travel’s higher possible upside, analysts clearly believe Allegiant Travel is more favorable than Republic Airways.
This table compares Republic Airways and Allegiant Travel’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Allegiant Travel pays an annual dividend of $2.80 per share and has a dividend yield of 1.9%. Republic Airways does not pay a dividend. Allegiant Travel pays out 30.1% of its earnings in the form of a dividend.
Allegiant Travel beats Republic Airways on 10 of the 12 factors compared between the two stocks.
Republic Airways Company Profile
Republic Airways Holdings Inc. is a holding company. The Company offers scheduled passenger services through its operating air carrier subsidiaries, Shuttle America Corporation (Shuttle) and Republic Airline Inc. (Republic). The Company’s subsidiaries offer scheduled passenger service on approximately 1,090 flights daily to approximately 120 cities in over 40 states and Canada under scheduled passenger service through its fixed-fee code-share agreements with United Continental Holdings, Inc. (United), Delta Air Lines, Inc. (Delta), and American Airlines Group, Inc. (American). The Company provides its partners with fixed-fee regional airline services, operating as United Express, Delta Connection, or American Eagle, including service out of their hubs and focus cities. It provides approximately 550 flights per day as American Eagle. It provides approximately 250 flights per day as Delta Connection. It provides approximately 300 flights per day as United Express.
Allegiant Travel Company Profile
Allegiant Travel Company is a leisure travel company. The Company is focused on providing travel services and products to residents of under-served cities in the United States. It also provides air transportation under fixed fee flying arrangements. The Company’s products and services include scheduled service air transportation, air-related ancillary products and services, third-party ancillary products and services and fixed fee contract air transportation. Its scheduled service air transportation includes scheduled air transportation on limited-frequency non-stop flights between under-served cities and leisure destinations. As of February 1, 2017, its operating fleet consisted of 47 MD-80 aircraft, 34 Airbus A320 series aircraft, and four Boeing 757-200 aircraft, and it was selling travel on 377 routes to 119 cities. The Company’s air-related ancillary products and services include providing unbundled air-related services and products in conjunction with air transportation.
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