Alaska Air Group, Inc. (ALK) vs LATAM Airlines Group S.A. (LTM)

Alaska Air Group, Inc. and LATAM Airlines Group S.A. are both Airlines companies. LATAM Airlines Group S.A. is the larger, with a market value of $14.8B against $4.5B — 3.3× the size. Alaska Air Group, Inc. has negative trailing earnings, so its P/E is not meaningful; LATAM Airlines Group S.A. trades at 9.6×. LATAM Airlines Group S.A. grew revenue faster over the last twelve months: 20.5% against 9.79%. LATAM Airlines Group S.A. has the higher net margin (9.85% vs −1.19%) and the higher return on invested capital (0.00% vs −1.94%). Across the 19 metrics below, LATAM Airlines Group S.A. leads on 14 and Alaska Air Group, Inc. on 5.

Valuation

Metric ALK LTM Airlines median
P/E n/m 9.63 10.32
P/S 0.31 0.95 0.57
P/B 1.24 7.58 2.06
Price to free cash flow n/m 6.90 13.20
EV/EBITDA 13.73 8.31 9.68
EV/Sales 0.55 1.24 0.89
Earnings yield (3.81%) 10.38% 2.85%
Free cash flow yield (12.05%) 14.49% 3.17%

Profitability

Metric ALK LTM Airlines median
Gross margin 100.00% 26.98% 42.57%
Operating margin (1.52%) 14.96% 4.18%
Net margin (1.19%) 9.85% 1.85%
Free cash flow margin (3.71%) 13.73% 4.31%
Return on equity (4.60%) 108.24% 10.75%
Return on assets (0.85%) 8.63% 1.67%
Return on invested capital (1.94%) 0.00% 3.19%

Growth

Metric ALK LTM Airlines median
Revenue growth (TTM) 9.79% 20.52% 9.79%
EPS growth (last fiscal year) (73.05%) 53.25% —
Revenue growth, 5-year CAGR 31.90% 29.45% 25.83%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ALK LTM Airlines median
Debt to equity 1.70 0.00 0.81
Current ratio 0.55 0.67 0.60
Net debt to EBITDA 3.10 (0.92) 1.42

Dividend

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

Size

Metric ALK LTM Airlines median
Market cap 4.50b 14.83b 3.91b

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