Grupo Aeromexico SAB DE CV - Sponsored ADR (AERO) vs Alaska Air Group, Inc. (ALK)

Grupo Aeromexico SAB DE CV - Sponsored ADR and Alaska Air Group, Inc. are both Airlines companies. Alaska Air Group, Inc. is the larger, with a market value of $4.5B against $2.3B — 2.0× the size. Alaska Air Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Grupo Aeromexico SAB DE CV - Sponsored ADR trades at 8.3×. Grupo Aeromexico SAB DE CV - Sponsored ADR has the higher net margin (5.30% vs −1.19%) and the higher return on invested capital (23.1% vs −1.94%). Across the 16 metrics below, Grupo Aeromexico SAB DE CV - Sponsored ADR leads on 13 and Alaska Air Group, Inc. on 3.

Valuation

Metric AERO ALK Airlines median
P/E 8.28 n/m 10.32
P/S 0.40 0.31 0.57
P/B n/m 1.24 2.06
Price to free cash flow 2.78 n/m 13.20
EV/EBITDA 4.32 13.73 9.68
EV/Sales 0.93 0.55 0.89
Earnings yield 12.08% (3.81%) 2.85%
Free cash flow yield 35.95% (12.05%) 3.17%

Profitability

Metric AERO ALK Airlines median
Gross margin 75.83% 100.00% 42.57%
Operating margin 15.48% (1.52%) 4.18%
Net margin 5.30% (1.19%) 1.85%
Free cash flow margin 15.24% (3.71%) 4.31%
Return on equity 0.00% (4.60%) 10.75%
Return on assets 8.19% (0.85%) 1.67%
Return on invested capital 23.07% (1.94%) 3.19%

Growth

Metric AERO ALK Airlines median
Revenue growth (TTM) — 9.79% 9.79%
EPS growth (last fiscal year) (46.98%) (73.05%) —
Revenue growth, 5-year CAGR — 31.90% 25.83%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric AERO ALK Airlines median
Debt to equity (6.38) 1.70 0.81
Current ratio 0.62 0.55 0.60
Net debt to EBITDA 1.83 3.10 1.42

Dividend

Metric AERO ALK Airlines median
Dividend yield — 0.37% 0.82%
Payout ratio — 0.00 0.00

Size

Metric AERO ALK Airlines median
Market cap 2.30b 4.50b 3.91b

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