Financial Review: Corporacion America Airports (NYSE:CAAP) versus Sun Country Airlines (NASDAQ:SNCY)

Sun Country Airlines (NASDAQ:SNCY) and Corporacion America Airports (NYSE:CAAP) are both transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Risk and Volatility

Sun Country Airlines has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500. Comparatively, Corporacion America Airports has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.

Earnings and Valuation

This table compares Sun Country Airlines and Corporacion America Airports”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sun Country Airlines	$1.08 billion	0.57	$52.90 million	$1.06	10.91
Corporacion America Airports	$1.87 billion	1.54	$282.67 million	$0.85	20.74

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Sun Country Airlines and Corporacion America Airports, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sun Country Airlines	0	3	6	0	2.67
Corporacion America Airports	0	0	4	0	3.00

Sun Country Airlines presently has a consensus target price of $18.13, indicating a potential upside of 56.79%. Corporacion America Airports has a consensus target price of $23.20, indicating a potential upside of 31.58%. Given Sun Country Airlines’ higher probable upside, analysts clearly believe Sun Country Airlines is more favorable than Corporacion America Airports.

Institutional and Insider Ownership

12.9% of Corporacion America Airports shares are owned by institutional investors. 4.6% of Sun Country Airlines shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Sun Country Airlines and Corporacion America Airports’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sun Country Airlines	5.35%	10.53%	3.86%
Corporacion America Airports	7.53%	9.06%	3.25%

About Sun Country Airlines

Sun Country Airlines Holdings, Inc., an air carrier company, operates scheduled passenger, air cargo, charter air transportation, and related services in the United States, Latin America, and internationally. It operates through two segments, Passenger and Cargo. The company also provides crew, maintenance, and insurance services through ad hoc, repeat, short-term, and long-term service contracts; and loyalty program rewards. As of December 31, 2023, its fleet consisted of 60 Boeing 737-NG aircraft, which includes 42 passenger fleet, 12 cargo, and 6 leased to unaffiliated airlines aircraft. The company serves leisure, and visiting friends and relatives passengers; charter and cargo customers; military branches; collegiate and professional sports teams; wholesale tour operators; schools; companies; and other individual entities through its website, call center, and travel agents. Sun Country Airlines Holdings, Inc. was founded in 1983 and is headquartered in Minneapolis, Minnesota.

About Corporacion America Airports

Corporación América Airports S.A., through its subsidiaries, acquires, develops, and operates airport concessions. It operates 52 airports in Latin America, Europe, and Eurasia. The company was formerly known as A.C.I. Airports International S.à r.l. and changed its name to Corporación América Airports S.A. in September 2017. The company was founded in 1998 and is based in Luxembourg City, Luxembourg. Corporación América Airports S.A. is a subsidiary of A.C.I. Airports S.à r.l.