Head-To-Head Contrast: Corporacion America Airports (NYSE:CAAP) versus Grupo Aeroportuario del Centro Norte (NASDAQ:OMAB)

Grupo Aeroportuario del Centro Norte (NASDAQ:OMAB) and Corporacion America Airports (NYSE:CAAP) are both mid-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Dividends

Grupo Aeroportuario del Centro Norte pays an annual dividend of $5.09 per share and has a dividend yield of 4.6%. Corporacion America Airports pays an annual dividend of $0.91 per share and has a dividend yield of 3.7%. Grupo Aeroportuario del Centro Norte pays out 80.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Corporacion America Airports pays out 51.1% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Grupo Aeroportuario del Centro Norte and Corporacion America Airports”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Aeroportuario del Centro Norte	$832.66 million	5.60	$296.74 million	$6.33	17.33
Corporacion America Airports	$1.96 billion	2.06	$247.72 million	$1.78	13.75

Grupo Aeroportuario del Centro Norte has higher earnings, but lower revenue than Corporacion America Airports. Corporacion America Airports is trading at a lower price-to-earnings ratio than Grupo Aeroportuario del Centro Norte, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Grupo Aeroportuario del Centro Norte has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Corporacion America Airports has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Grupo Aeroportuario del Centro Norte and Corporacion America Airports, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Aeroportuario del Centro Norte	1	3	1	0	2.00
Corporacion America Airports	1	1	3	0	2.40

Grupo Aeroportuario del Centro Norte presently has a consensus target price of $134.00, indicating a potential upside of 22.18%. Corporacion America Airports has a consensus target price of $30.50, indicating a potential upside of 24.62%. Given Corporacion America Airports’ stronger consensus rating and higher possible upside, analysts clearly believe Corporacion America Airports is more favorable than Grupo Aeroportuario del Centro Norte.

Profitability

This table compares Grupo Aeroportuario del Centro Norte and Corporacion America Airports’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Aeroportuario del Centro Norte	31.69%	49.38%	16.89%
Corporacion America Airports	13.58%	16.69%	6.33%

Institutional and Insider Ownership

9.5% of Grupo Aeroportuario del Centro Norte shares are held by institutional investors. Comparatively, 13.0% of Corporacion America Airports shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Grupo Aeroportuario del Centro Norte beats Corporacion America Airports on 8 of the 15 factors compared between the two stocks.

About Grupo Aeroportuario del Centro Norte

Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., together with its subsidiaries, holds concessions to develop, operate, and maintain airports in Mexico. The company operates 13 international airports in Monterrey, Acapulco, Mazatlán, Zihuatanejo, Ciudad Juárez, Reynosa, Chihuahua, Culiacán, Durango, San Luis Potosí, Tampico, Torreón, and Zacatecas cities. It also operates the NH Collection Hotel in Terminal 2 of the Mexico City International Airport, and a hotel under the Hilton Garden Inn name at the Monterrey International Airport. In addition, the company provides aeronautical services, which include passenger, aircraft landing and parking, boarding and unloading, passenger walkway, and airport security services. Further, it offers complementary services that comprise leasing of space to airlines, cargo handling, baggage-screening, permanent and non-permanent ground transportation, and access rights services; non-aeronautical services, such as leasing of space at its airports to retailers, restaurants, and other commercial tenants, as well as maintaining of parking facilities and advertising; and diversification services, which consists of operation and lease of the industrial park and real estate services, as well as hotel and air cargo logistics services. Additionally, the company provides construction services. It has a strategic alliance with VYNMSA Desarrollo Inmobiliario, S.A. de C.V. to build and operate an industrial park at the Monterrey airport. The company was founded in 1998 and is headquartered in Mexico City, Mexico.

About Corporacion America Airports

Corporación América Airports S.A., through its subsidiaries, acquires, develops, and operates airport concessions. It operates 52 airports in Latin America, Europe, and Eurasia. The company was formerly known as A.C.I. Airports International S.à r.l. and changed its name to Corporación América Airports S.A. in September 2017. The company was founded in 1998 and is based in Luxembourg City, Luxembourg. Corporación América Airports S.A. is a subsidiary of A.C.I. Airports S.à r.l.