Delta Air Lines (NYSE:DAL – Get Free Report) and LATAM Airlines Group (OTCMKTS:LTMAY – Get Free Report) are both large-cap transportation companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.
Insider and Institutional Ownership
68.3% of Delta Air Lines shares are owned by institutional investors. 0.9% of Delta Air Lines shares are owned by company insiders. Comparatively, 7.8% of LATAM Airlines Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Delta Air Lines has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, LATAM Airlines Group has a beta of 3.45, suggesting that its stock price is 245% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Delta Air Lines | 5.36% | 59.56% | 5.22% |
| LATAM Airlines Group | 18.02% | -45.94% | 13.64% |
Valuation and Earnings
This table compares Delta Air Lines 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 | |
| Delta Air Lines | $55.75 billion | 0.56 | $1.32 billion | $4.64 | 10.50 |
| LATAM Airlines Group | $9.36 billion | 46.39 | $1.34 billion | N/A | N/A |
LATAM Airlines Group has lower revenue, but higher earnings than Delta Air Lines.
Analyst Recommendations
This is a summary of recent ratings and target prices for Delta Air Lines and LATAM Airlines Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Delta Air Lines | 0 | 0 | 12 | 1 | 3.08 |
| LATAM Airlines Group | 0 | 1 | 0 | 0 | 2.00 |
Delta Air Lines presently has a consensus target price of $56.88, suggesting a potential upside of 16.79%. Given Delta Air Lines’ stronger consensus rating and higher possible upside, equities analysts clearly believe Delta Air Lines is more favorable than LATAM Airlines Group.
Summary
Delta Air Lines beats LATAM Airlines Group on 7 of the 13 factors compared between the two stocks.
About Delta Air Lines
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, Mexico City, London-Heathrow, Paris-Charles de Gaulle, and Seoul-Incheon. The company sells its tickets through various distribution channels, including delta.com and the Fly Delta app, reservations, online travel agencies, traditional brick and mortar, and other agencies. It also provides aircraft maintenance and engineering support, repair, and overhaul services; and vacation packages to third-party consumers, as well as aircraft charters, and management and programs. The company operates through a fleet of approximately 1,250 aircrafts. Delta Air Lines, Inc. was founded in 1924 and is based in Atlanta, Georgia.
About LATAM Airlines Group
LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services primarily in Chile, Peru, Ecuador, Colombia, Brazil, other Latin American countries, the Caribbean, North America, Europe, and Oceania. It offers other services, such as ground handling, courier, logistics, and maintenance services. The company was formerly known as LAN Airlines S.A. and changed its name to LATAM Airlines Group S.A. in June 2012. LATAM Airlines Group S.A. was founded in 1929 and is headquartered in Santiago, Chile.
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