Spirit Airlines (NASDAQ: SAVE) is one of 31 publicly-traded companies in the “Airlines” industry, but how does it contrast to its competitors? We will compare Spirit Airlines to similar businesses based on the strength of its earnings, valuation, dividends, risk, institutional ownership, profitability and analyst recommendations.
Insider and Institutional Ownership
97.0% of Spirit Airlines shares are owned by institutional investors. Comparatively, 78.9% of shares of all “Airlines” companies are owned by institutional investors. 0.3% of Spirit Airlines shares are owned by insiders. Comparatively, 5.5% of shares of all “Airlines” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Spirit Airlines and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Spirit Airlines Competitors||3.58%||9.88%||3.39%|
This is a breakdown of recent ratings for Spirit Airlines and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Spirit Airlines Competitors||315||1128||2166||104||2.55|
Spirit Airlines currently has a consensus price target of $49.44, indicating a potential upside of 46.68%. As a group, “Airlines” companies have a potential downside of 4.91%. Given Spirit Airlines’ higher probable upside, research analysts clearly believe Spirit Airlines is more favorable than its competitors.
Risk and Volatility
Spirit Airlines has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Spirit Airlines’ competitors have a beta of 1.20, meaning that their average share price is 20% more volatile than the S&P 500.
Valuation & Earnings
This table compares Spirit Airlines and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Spirit Airlines||$2.49 billion||$509.32 million||9.77|
|Spirit Airlines Competitors||$8.61 billion||$1.57 billion||-90.34|
Spirit Airlines’ competitors have higher revenue and earnings than Spirit Airlines. Spirit Airlines is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Spirit Airlines competitors beat Spirit Airlines on 7 of the 13 factors compared.
About Spirit Airlines
Spirit Airlines, Inc. is an airline company. The Company provides air transportation for passengers. As of December 31, 2016, its all-Airbus Fit Fleet operated over 420 daily flights to 59 destinations in the United States, Caribbean and Latin America. As of December 31, 2016, it had a fleet of 95 Airbus single-aisle aircraft, which are referred to as A320 family aircraft and include the A319, A320 and A321 models, which have common design and equipment but differ most notably in fuselage length, service range and seat capacity. As of December 31, 2016, its fleet consisted of 29 A319s, 45 A320ceos, five A320neos and 16 A321ceos. Its Bare Fares offerings are unbundled base fares that remove components included in the price of an airline ticket. It also offers Frill Control, which allows customers to pay only for the options they choose, such as bags, advance seat assignments and refreshments. As of December 31, 2016, its route network included 200 markets served by 59 airports.
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