Avianca Holdings (AVH) versus The Competition Financial Review

Avianca Holdings (NYSE: AVH) is one of 31 publicly-traded companies in the “Airlines” industry, but how does it compare to its competitors? We will compare Avianca Holdings to similar businesses based on the strength of its earnings, analyst recommendations, institutional ownership, valuation, risk, dividends and profitability.

Analyst Ratings

This is a summary of current ratings for Avianca Holdings and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avianca Holdings 1 3 0 0 1.75
Avianca Holdings Competitors 299 1044 2147 95 2.57

Avianca Holdings presently has a consensus price target of $9.00, suggesting a potential upside of 17.19%. As a group, “Airlines” companies have a potential downside of 11.12%. Given Avianca Holdings’ higher possible upside, equities analysts plainly believe Avianca Holdings is more favorable than its competitors.

Valuation & Earnings

This table compares Avianca Holdings and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Avianca Holdings $4.33 billion $555.92 million 10.11
Avianca Holdings Competitors $8.61 billion $1.57 billion -88.66

Avianca Holdings’ competitors have higher revenue and earnings than Avianca Holdings. Avianca Holdings 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.

Profitability

This table compares Avianca Holdings and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avianca Holdings 2.20% 13.27% 1.81%
Avianca Holdings Competitors 4.05% 11.03% 3.65%

Risk and Volatility

Avianca Holdings has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Avianca Holdings’ competitors have a beta of 1.20, meaning that their average stock price is 20% more volatile than the S&P 500.

Institutional & Insider Ownership

2.8% of Avianca Holdings shares are owned by institutional investors. Comparatively, 78.9% of shares of all “Airlines” companies are owned by institutional investors. 5.5% of shares of all “Airlines” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Avianca Holdings pays an annual dividend of $0.09 per share and has a dividend yield of 1.2%. Avianca Holdings pays out 11.8% of its earnings in the form of a dividend. As a group, “Airlines” companies pay a dividend yield of 1.8% and pay out 33.5% of their earnings in the form of a dividend.

Summary

Avianca Holdings competitors beat Avianca Holdings on 11 of the 15 factors compared.

Avianca Holdings Company Profile

Avianca Holdings SA is a Panama-based company engaged, through its subsidiaries, in the provision of air transportation services for passengers and commercial purposes. The Company was originally established as a strategic alliance between Aerovias del Continente Americano SA (AVIANCA) and Grupo TACA Holdings Limited (GTH), and it mainly operates in North, Central and South America, the Caribbean and Europe. In addition, through codeshare agreements, the Company is active in the operation of other international passenger air routes. As of December 31, 2011, the Company owned such subsidiaries as Latin Airways Corporation and LifeMiles Corporation, among others. On December 28, 2012, the merger of subsidiaries Latin Airways Corporation, as absorbing company, with Synergy Ocean Air Colombia SAS and Soac 2 SAS was formalized. On June 18, 2013, the Company received the first out of 15 ATR 72-600, a turbo-propelled aircraft from ATR, a company engaged in regional aircraft.

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