Critical Review: Delta Air Lines (DAL) & Its Rivals

Delta Air Lines (NYSE:DAL – Get Free Report) is one of 78 publicly-traded companies in the “Passenger Airlines” industry, but how does it compare to its rivals? We will compare Delta Air Lines to similar companies based on the strength of its valuation, institutional ownership, profitability, earnings, risk, analyst recommendations and dividends.

Valuation & Earnings

This table compares Delta Air Lines and its rivals top-line revenue, earnings per share (EPS) and valuation.

Delta Air Lines has higher revenue, but lower earnings than its rivals. Delta Air Lines is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

69.9% of Delta Air Lines shares are held by institutional investors. Comparatively, 43.0% of shares of all “Passenger Airlines” companies are held by institutional investors. 0.8% of Delta Air Lines shares are held by company insiders. Comparatively, 11.2% of shares of all “Passenger Airlines” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Delta Air Lines has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Delta Air Lines’ rivals have a beta of 2.07, suggesting that their average share price is 107% more volatile than the S&P 500.

Profitability

This table compares Delta Air Lines and its rivals’ net margins, return on equity and return on assets.

Dividends

Delta Air Lines pays an annual dividend of $0.86 per share and has a dividend yield of 1.1%. Delta Air Lines pays out 17.2% of its earnings in the form of a dividend. As a group, “Passenger Airlines” companies pay a dividend yield of 1.5% and pay out 22.2% of their earnings in the form of a dividend. Delta Air Lines has raised its dividend for 1 consecutive years.

Analyst Ratings

This is a summary of current ratings and recommmendations for Delta Air Lines and its rivals, as provided by MarketBeat.

Delta Air Lines presently has a consensus target price of $99.65, indicating a potential upside of 22.08%. As a group, “Passenger Airlines” companies have a potential upside of 14.75%. Given Delta Air Lines’ stronger consensus rating and higher possible upside, analysts plainly believe Delta Air Lines is more favorable than its rivals.

Summary

Delta Air Lines rivals beat Delta Air Lines on 8 of the 14 factors compared.

Delta Air Lines Company Profile

(Get Free Report)

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, Bogota, Lima, Mexico City, London-Heathrow, Paris-Charles de Gaulle, Sao Paulo, Seoul-Incheon, and Tokyo. The company sells its tickets through various distribution channels, including delta.com and the Fly Delta app; acts as a reservations specialists; and operates online travel and traditional brick and mortar agencies. It also provides aircraft maintenance and engineering support, repair, and overhaul services; and vacation packages to third-party consumers. The company operates through a fleet of approximately 1,273 aircrafts. Delta Air Lines, Inc. was founded in 1924 and is based in Atlanta, Georgia.

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