Financial Comparison: Allegiant Travel (NASDAQ:ALGT) vs. ANA (OTCMKTS:ALNPY)

Allegiant Travel (NASDAQ:ALGT) and ANA (OTCMKTS:ALNPY) are both transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Insider & Institutional Ownership

85.8% of Allegiant Travel shares are held by institutional investors. 14.7% of Allegiant Travel shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Allegiant Travel and ANA”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allegiant Travel	$2.58 billion	0.49	-$240.24 million	($16.30)	-4.19
ANA	$14.85 billion	0.62	$1.01 billion	$0.39	10.08

ANA has higher revenue and earnings than Allegiant Travel. Allegiant Travel is trading at a lower price-to-earnings ratio than ANA, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Allegiant Travel and ANA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegiant Travel	2	7	1	1	2.09
ANA	0	0	0	0	0.00

Allegiant Travel currently has a consensus price target of $70.89, suggesting a potential upside of 3.76%. Given Allegiant Travel’s stronger consensus rating and higher possible upside, equities analysts plainly believe Allegiant Travel is more favorable than ANA.

Profitability

This table compares Allegiant Travel and ANA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allegiant Travel	-11.10%	5.00%	1.26%
ANA	6.58%	13.51%	4.21%

Dividends

Allegiant Travel pays an annual dividend of $2.40 per share and has a dividend yield of 3.5%. ANA pays an annual dividend of $0.05 per share and has a dividend yield of 1.3%. Allegiant Travel pays out -14.7% of its earnings in the form of a dividend. ANA pays out 12.8% 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. Allegiant Travel is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Allegiant Travel has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, ANA has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Summary

Allegiant Travel beats ANA on 9 of the 17 factors compared between the two stocks.

About Allegiant Travel

Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited-frequency, nonstop flights between under-served cities and leisure destinations. As of February 1, 2024, it operated a fleet of 126 Airbus A320 series aircraft. The company also provides air-related services and products in conjunction with air transportation, including baggage fees, advance seat assignments, travel protection products, priority boarding, a customer convenience fee, food and beverage purchases on board, and other air-related services, as well as use of its call center for purchases. In addition, it offers third party travel products, such as hotel rooms and ground transportation, such as rental cars and hotel shuttle products; and air transportation services through fixed fee agreements and charter service on a year-round and ad-hoc basis. Further, the company operates a golf course. Allegiant Travel Company was founded in 1997 and is based in Las Vegas, Nevada.

About ANA

ANA Holdings Inc., together with its subsidiaries, provides air transportation services in Japan and internationally. It operates through Air Transportation, Aviation-Related Business, Travel Business, and Trading Business segments. The Air Transportation segment offers regular and irregular air transport of passengers, cargo, etc. on domestic and international routes. The Aviation-Related Business segment provides services incidental to air transportation, such as airport handling and maintenance. The Travel Business develops and sells travel products, as well as plans and sells package travel products. The Trading Business imports and exports aviation-related materials, as well as sells through stores and mail-order channels. The company was formerly known as All Nippon Airways Co., Ltd. and changed its name to ANA Holdings Inc. in April 2013. ANA Holdings Inc. was incorporated in 1920 and is headquartered in Minato, Japan.