Hawaiian (NASDAQ: HA) and American Airlines Group (NASDAQ:AAL) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.
Earnings & Valuation
This table compares Hawaiian and American Airlines Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hawaiian||$2.70 billion||0.69||$364.04 million||$5.64||6.51|
|American Airlines Group||$42.21 billion||0.48||$1.92 billion||$4.88||8.80|
This is a summary of recent recommendations for Hawaiian and American Airlines Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Airlines Group||1||2||11||0||2.71|
Hawaiian presently has a consensus target price of $50.91, indicating a potential upside of 38.72%. American Airlines Group has a consensus target price of $61.21, indicating a potential upside of 42.56%. Given American Airlines Group’s stronger consensus rating and higher probable upside, analysts clearly believe American Airlines Group is more favorable than Hawaiian.
Risk & Volatility
Hawaiian has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, American Airlines Group has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.
Hawaiian pays an annual dividend of $0.48 per share and has a dividend yield of 1.3%. American Airlines Group pays an annual dividend of $0.40 per share and has a dividend yield of 0.9%. Hawaiian pays out 8.5% of its earnings in the form of a dividend. American Airlines Group pays out 8.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This table compares Hawaiian and American Airlines Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Airlines Group||4.35%||92.63%||4.65%|
Institutional & Insider Ownership
85.5% of Hawaiian shares are owned by institutional investors. Comparatively, 80.7% of American Airlines Group shares are owned by institutional investors. 1.7% of Hawaiian shares are owned by company insiders. Comparatively, 0.7% of American Airlines Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Hawaiian Holdings, Inc., through its subsidiary, engages in the scheduled air transportation of passengers and cargo. The company offers daily services on North America routes between the State of Hawai'i and Los Angeles, Oakland, Sacramento, San Diego, San Francisco, and San Jose, California; Las Vegas, Nevada; Phoenix, Arizona; Portland, Oregon; and Seattle, Washington. It also provides daily service on Neighbor Island routes among the six islands of the State of Hawai'I; and international routes between the State of Hawai'i and Sydney, Australia, as well as Tokyo and Osaka, Japan. In addition, the company offers scheduled service between the State of Hawai'i and New York City, New York; Pago Pago, American Samoa; Papeete, Tahiti; Brisbane, Australia; Auckland, New Zealand; Sapporo, Japan; Seoul, South Korea; and Beijing, China, as well as various ad hoc charters. Hawaiian Holdings, Inc. distributes its tickets through various distribution channels, including its Website hawaiianairlines.com primarily for North America and Neighbor Island routes, as well as through travel agencies and wholesale distributors for its international routes. As of December 31, 2017, the company's fleet consisted of 20 Boeing 717-200 aircraft for the Neighbor Island routes; 8 Boeing 767-300 aircraft; 24 Airbus A330-200 aircraft; and 2 Airbus A321-200 for the North America, international, and charter routes, as well as owns 3 ATR42 aircraft. Hawaiian Holdings, Inc. was founded in 1929 and is headquartered in Honolulu, Hawaii.
About American Airlines Group
American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. It provides scheduled air transportation services for passengers and cargo. As of December 31, 2017, the company operated a mainline fleet of 948 aircraft. It serves 350 destinations in approximately 50 countries, principally from its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, and Phoenix, as well as in Washington, D.C. The company was formerly known as AMR Corporation and changed its name to American Airlines Group Inc. in December 2013. American Airlines Group Inc. was founded in 1934 and is headquartered in Fort Worth, Texas.
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