Delta Air Lines, Inc. (DAL) vs China Southern Airlines Company Limited (ZNH)

Delta Air Lines, Inc. and China Southern Airlines Company Limited are both Airlines companies. Delta Air Lines, Inc. is the larger, with a market value of $54.8B against $17.7B — 3.1× the size. China Southern Airlines Company Limited has negative trailing earnings, so its P/E is not meaningful; Delta Air Lines, Inc. trades at 14.0×. Delta Air Lines, Inc. grew revenue faster over the last twelve months: 10.3% against −2.66%. Delta Air Lines, Inc. has the higher net margin (5.78% vs −9.08%) and the higher return on invested capital (11.1% vs 0.00%). Across the 19 metrics below, Delta Air Lines, Inc. leads on 16 and China Southern Airlines Company Limited on 3.

Valuation

Metric DAL ZNH Airlines median
P/E 13.99 n/m 10.32
P/S 0.81 0.55 0.57
P/B 2.55 1.28 2.06
Price to free cash flow 16.29 n/m 13.20
EV/EBITDA 11.75 199.92 9.68
EV/Sales 0.95 1.02 0.89
Earnings yield 7.15% (11.51%) 2.85%
Free cash flow yield 6.14% (8.02%) 3.17%

Profitability

Metric DAL ZNH Airlines median
Gross margin 32.82% (0.11%) 42.57%
Operating margin 8.08% (7.90%) 4.18%
Net margin 5.78% (9.08%) 1.85%
Free cash flow margin 4.99% 0.00% 4.31%
Return on equity 20.12% 0.00% 10.75%
Return on assets 4.80% 0.00% 1.67%
Return on invested capital 11.08% 0.00% 3.19%

Growth

Metric DAL ZNH Airlines median
Revenue growth (TTM) 10.27% (2.66%) 9.79%
EPS growth (last fiscal year) 43.71% 57.67% —
Revenue growth, 5-year CAGR 29.96% 1.65% 25.83%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DAL ZNH Airlines median
Debt to equity 0.64 2.82 0.81
Current ratio 0.42 0.23 0.60
Net debt to EBITDA 1.19 22.72 1.42

Dividend

Metric DAL ZNH Airlines median
Dividend yield 0.82% — 0.82%
Payout ratio 0.02 0.00 0.00

Size

Metric DAL ZNH Airlines median
Market cap 54.81b 17.69b 3.91b

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