Frontier Group (NASDAQ:ULCC – Get Rating) and LATAM Airlines Group (OTCMKTS:LTMAY – Get Rating) are both transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Profitability
This table compares Frontier Group and LATAM Airlines Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Frontier Group | 1.99% | 16.92% | 1.81% |
| LATAM Airlines Group | 18.02% | -45.94% | 13.64% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Frontier Group and LATAM Airlines Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Frontier Group | 0 | 3 | 9 | 0 | 2.75 |
| LATAM Airlines Group | 0 | 1 | 0 | 0 | 2.00 |
Volatility and Risk
Frontier Group has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500. Comparatively, LATAM Airlines Group has a beta of 3.24, suggesting that its share price is 224% more volatile than the S&P 500.
Valuation & Earnings
This table compares Frontier Group and LATAM Airlines Group’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Frontier Group | $3.33 billion | 0.61 | -$37.00 million | $0.31 | 30.19 |
| LATAM Airlines Group | $9.36 billion | 24.56 | $1.34 billion | N/A | N/A |
LATAM Airlines Group has higher revenue and earnings than Frontier Group.
Summary
LATAM Airlines Group beats Frontier Group on 6 of the 10 factors compared between the two stocks.
About Frontier Group
Frontier Group Holdings, Inc. engages in the provision of air transportation. The company was founded on September 2013 and is headquartered in Denver, CO.
About LATAM Airlines Group
LATAM Airlines Group SA is holding company, which engages in the provision of passenger air transportation and cargo services. The Air Transportation segment corresponds to the route network for air transport. The Multiplus Coalition and Loyalty Program segment offers a coalition system, interrelated among its members, along with being a government entity with a separately business and not directly related to air transport. The company was founded in 1929 and is headquartered in Las Condes, Chile.
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