Contrasting Grupo Aeroportuario Del Pacifico (NYSE:PAC) and Royal Mail (OTCMKTS:ROYMY)

Royal Mail (OTCMKTS:ROYMY) and Grupo Aeroportuario Del Pacifico (NYSE:PAC) are both transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Insider & Institutional Ownership

11.7% of Grupo Aeroportuario Del Pacifico shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Royal Mail and Grupo Aeroportuario Del Pacifico’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royal Mail	N/A	N/A	N/A
Grupo Aeroportuario Del Pacifico	24.28%	39.81%	11.64%

Dividends

Royal Mail pays an annual dividend of $0.05 per share and has a dividend yield of 0.6%. Grupo Aeroportuario Del Pacifico pays an annual dividend of $7.90 per share and has a dividend yield of 3.4%. Grupo Aeroportuario Del Pacifico pays out 82.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Royal Mail has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Grupo Aeroportuario Del Pacifico has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Royal Mail and Grupo Aeroportuario Del Pacifico, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Mail	0	0	0	0	0.00
Grupo Aeroportuario Del Pacifico	1	5	2	0	2.13

Grupo Aeroportuario Del Pacifico has a consensus target price of $210.00, suggesting a potential downside of 8.39%. Given Grupo Aeroportuario Del Pacifico’s stronger consensus rating and higher probable upside, analysts clearly believe Grupo Aeroportuario Del Pacifico is more favorable than Royal Mail.

Valuation and Earnings

This table compares Royal Mail and Grupo Aeroportuario Del Pacifico”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Mail	$15.94 billion	0.26	$67.88 million	N/A	N/A
Grupo Aeroportuario Del Pacifico	$1.84 billion	6.28	$472.81 million	$9.64	23.78

Grupo Aeroportuario Del Pacifico has lower revenue, but higher earnings than Royal Mail.

Summary

Grupo Aeroportuario Del Pacifico beats Royal Mail on 10 of the 13 factors compared between the two stocks.

About Royal Mail

International Distributions Services plc, together with its subsidiaries, operates as a universal postal service provider in the United Kingdom and internationally. The company offers parcels and letter delivery services under the Royal Mail and Parcelforce Worldwide brands. It also provides services for the collection, sorting, and delivery of parcels and letters. In addition, the company operates ground-based parcel delivery networks in Europe that covers 40 countries and nation states. Further, it provides express parcel delivery and logistics services. Additionally, the company engages in property holdings and facilities management activities. It serves consumers, and small and medium-sized enterprises. The company was formerly known as Royal Mail plc and changed its name to International Distributions Services plc in October 2022. International Distributions Services plc was founded in 1516 and is based in London, the United Kingdom.

About Grupo Aeroportuario Del Pacifico

Grupo Aeroportuario del Pacífico, S.A.B. de C.V., together with its subsidiaries, holds concessions to develop, operate, and manage airports in Mexico and Jamaica. The company operates twelve international airports in Guadalajara and Tijuana areas, Mexico; and two international airports in Montego Bay, Jamaica. It also offers aeronautical services, such as passenger, aircraft landing, parking, airport security, and passenger walkway and airport bus, as well as car packing charges; complementary services, including baggage handling, catering, aircraft maintenance and repair, and fuel; cargo handling; and ground transportation services. In addition, the company provides non-aeronautical services, such as redesigning and modernizing terminal spaces and developing new projects; telephone and internet services; and ground handling services under the brand Primesky, as well as advertising services. Further, it engages in commercial activities comprising leasing space in terminals to airlines and other service providers; to retail stores, such as souvenir and gift shops, fashion and footwear stores, pharmacies, jewelry, electronics, cosmetics, and others; to various food and beverage services; car rental service companies, including parking spots, lots, and car rental reservation booths; to timeshare developers; to financial service providers; and to operators of duty-free stores. Additionally, the company operates parking facilities; VIP lounges; convenience stores; and vending machines. The company was incorporated in 1998 and is headquartered in Guadalajara, Mexico.