Copa Holdings, S.A. (CPA) vs LATAM Airlines Group S.A. (LTM)

Copa Holdings, S.A. 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 $5.3B — 2.8× the size. Copa Holdings, S.A. trades at the lower P/E: 8.8× against 9.6×. LATAM Airlines Group S.A. grew revenue faster over the last twelve months: 20.5% against 14.8%. Copa Holdings, S.A. has the higher net margin (15.7% vs 9.85%) and the higher return on invested capital (12.4% vs 0.00%). Across the 21 metrics below, LATAM Airlines Group S.A. leads on 11 and Copa Holdings, S.A. on 10.

Valuation

Metric CPA LTM Airlines median
P/E 8.79 9.63 10.32
P/S 1.37 0.95 0.57
P/B 1.90 7.58 2.06
Price to free cash flow 30.89 6.90 13.20
EV/EBITDA 8.39 8.31 9.68
EV/Sales 1.62 1.24 0.89
Earnings yield 11.37% 10.38% 2.85%
Free cash flow yield 3.24% 14.49% 3.17%

Profitability

Metric CPA LTM Airlines median
Gross margin 62.38% 26.98% 42.57%
Operating margin 19.36% 14.96% 4.18%
Net margin 15.71% 9.85% 1.85%
Free cash flow margin 4.44% 13.73% 4.31%
Return on equity 23.07% 108.24% 10.75%
Return on assets 9.54% 8.63% 1.67%
Return on invested capital 12.43% 0.00% 3.19%

Growth

Metric CPA LTM Airlines median
Revenue growth (TTM) 14.75% 20.52% 9.79%
EPS growth (last fiscal year) 11.81% 53.25% —
Revenue growth, 5-year CAGR 35.20% 29.45% 25.83%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CPA LTM Airlines median
Debt to equity 0.79 0.00 0.81
Current ratio 1.06 0.67 0.60
Net debt to EBITDA 0.54 (0.92) 1.42

Dividend

Metric CPA LTM Airlines median
Dividend yield 5.83% — 0.82%
Payout ratio 0.21 — 0.00

Size

Metric CPA LTM Airlines median
Market cap 5.30b 14.83b 3.91b

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