LATAM Airlines Group S.A. (LTM) vs China Southern Airlines Company Limited (ZNH)

LATAM Airlines Group S.A. and China Southern Airlines Company Limited are both Airlines companies. China Southern Airlines Company Limited is the larger, with a market value of $17.7B against $14.8B — 1.2× the size. China Southern Airlines Company Limited 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 −2.66%. LATAM Airlines Group S.A. has the higher net margin (9.85% vs −9.08%) and the higher return on invested capital (0.00% vs 0.00%). Across the 18 metrics below, LATAM Airlines Group S.A. leads on 14 and China Southern Airlines Company Limited on 4.

Valuation

Metric LTM ZNH Airlines median
P/E 9.63 n/m 10.32
P/S 0.95 0.55 0.57
P/B 7.58 1.28 2.06
Price to free cash flow 6.90 n/m 13.20
EV/EBITDA 8.31 199.92 9.68
EV/Sales 1.24 1.02 0.89
Earnings yield 10.38% (11.51%) 2.85%
Free cash flow yield 14.49% (8.02%) 3.17%

Profitability

Metric LTM ZNH Airlines median
Gross margin 26.98% (0.11%) 42.57%
Operating margin 14.96% (7.90%) 4.18%
Net margin 9.85% (9.08%) 1.85%
Free cash flow margin 13.73% 0.00% 4.31%
Return on equity 108.24% 0.00% 10.75%
Return on assets 8.63% 0.00% 1.67%
Return on invested capital 0.00% 0.00% 3.19%

Growth

Metric LTM ZNH Airlines median
Revenue growth (TTM) 20.52% (2.66%) 9.79%
EPS growth (last fiscal year) 53.25% 57.67% —
Revenue growth, 5-year CAGR 29.45% 1.65% 25.83%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric LTM ZNH Airlines median
Debt to equity 0.00 2.82 0.81
Current ratio 0.67 0.23 0.60
Net debt to EBITDA (0.92) 22.72 1.42

Dividend

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

Size

Metric LTM ZNH Airlines median
Market cap 14.83b 17.69b 3.91b

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