Alaska Air Group, Inc. (ALK) vs SkyWest, Inc. (SKYW)

Alaska Air Group, Inc. and SkyWest, Inc. are both Airlines companies. Alaska Air Group, Inc. is the larger, with a market value of $4.5B against $3.9B — 1.2× the size. Alaska Air Group, Inc. has negative trailing earnings, so its P/E is not meaningful; SkyWest, Inc. trades at 10.0×. Alaska Air Group, Inc. grew revenue faster over the last twelve months: 9.79% against 9.10%. SkyWest, Inc. has the higher net margin (9.78% vs −1.19%) and the higher return on invested capital (8.24% vs −1.94%). Both pay a dividend; Alaska Air Group, Inc. yields more (0.37% vs 0.17%). Across the 20 metrics below, SkyWest, Inc. leads on 13 and Alaska Air Group, Inc. on 7.

Valuation

Metric ALK SKYW Airlines median
P/E n/m 9.97 10.32
P/S 0.31 0.96 0.57
P/B 1.24 1.46 2.06
Price to free cash flow n/m 12.32 13.20
EV/EBITDA 13.73 9.74 9.68
EV/Sales 0.55 1.37 0.89
Earnings yield (3.81%) 10.03% 2.85%
Free cash flow yield (12.05%) 8.11% 3.17%

Profitability

Metric ALK SKYW Airlines median
Gross margin 100.00% 70.05% 42.57%
Operating margin (1.52%) 14.03% 4.18%
Net margin (1.19%) 9.78% 1.85%
Free cash flow margin (3.71%) 7.81% 4.31%
Return on equity (4.60%) 15.34% 10.75%
Return on assets (0.85%) 5.62% 1.67%
Return on invested capital (1.94%) 8.24% 3.19%

Growth

Metric ALK SKYW Airlines median
Revenue growth (TTM) 9.79% 9.10% 9.79%
EPS growth (last fiscal year) (73.05%) 33.20% —
Revenue growth, 5-year CAGR 31.90% 13.79% 25.83%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ALK SKYW Airlines median
Debt to equity 1.70 0.83 0.81
Current ratio 0.55 0.57 0.60
Net debt to EBITDA 3.10 1.72 1.42

Dividend

Metric ALK SKYW Airlines median
Dividend yield 0.37% 0.17% 0.82%
Payout ratio 0.00 0.00 0.00

Size

Metric ALK SKYW Airlines median
Market cap 4.50b 3.91b 3.91b

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