Delta Air Lines (NYSE: DAL) and Hawaiian Holdings (NASDAQ:HA) are both transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.
Risk & Volatility
Delta Air Lines has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Hawaiian Holdings has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.
Earnings and Valuation
This table compares Delta Air Lines and Hawaiian Holdings’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Delta Air Lines||$40.46 billion||0.89||$7.45 billion||$4.98||10.05|
|Hawaiian Holdings||$2.59 billion||0.69||$606.10 million||$3.76||8.91|
Delta Air Lines has higher revenue and earnings than Hawaiian Holdings. Hawaiian Holdings is trading at a lower price-to-earnings ratio than Delta Air Lines, indicating that it is currently the more affordable of the two stocks.
This table compares Delta Air Lines and Hawaiian Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Delta Air Lines||8.97%||26.50%||6.77%|
This is a summary of current ratings and recommmendations for Delta Air Lines and Hawaiian Holdings, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Delta Air Lines||0||0||15||0||3.00|
Delta Air Lines presently has a consensus target price of $64.62, suggesting a potential upside of 29.15%. Hawaiian Holdings has a consensus target price of $47.58, suggesting a potential upside of 42.04%. Given Hawaiian Holdings’ higher probable upside, analysts plainly believe Hawaiian Holdings is more favorable than Delta Air Lines.
Delta Air Lines pays an annual dividend of $1.22 per share and has a dividend yield of 2.4%. Hawaiian Holdings does not pay a dividend. Delta Air Lines pays out 24.5% of its earnings in the form of a dividend. Delta Air Lines has increased its dividend for 3 consecutive years.
Institutional & Insider Ownership
87.7% of Delta Air Lines shares are owned by institutional investors. Comparatively, 91.4% of Hawaiian Holdings shares are owned by institutional investors. 0.4% of Delta Air Lines shares are owned by company insiders. Comparatively, 2.3% of Hawaiian Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Delta Air Lines beats Hawaiian Holdings on 10 of the 17 factors compared between the two stocks.
About Delta Air Lines
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo throughout the United States and across the world. The Company’s segments include Airline and Refinery. The Company’s route network is centered around a system of hub, international gateway and airports that the Company operates in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Minneapolis-St. Paul, New York-LaGuardia, New York- John F Kennedy International Airport, Paris-Charles de Gaulle, Salt Lake City, Seattle and Tokyo-Narita. Each of these operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub or gateway to domestic and international cities and to other hubs or gateways. The Company’s route network includes its international joint ventures, its alliances with other foreign airlines, its membership in SkyTeam and agreements with multiple domestic regional carriers that operate as Delta Connection.
About Hawaiian Holdings
Hawaiian Holdings, Inc. is a holding company. The Company is engaged in the scheduled air transportation of passengers and cargo amongst the Hawaiian Islands (the Neighbor Island routes), between the Hawaiian Islands and certain cities in the United States (the North America routes), and between the Hawaiian Islands and the South Pacific, Australia, New Zealand and Asia (the International routes), collectively referred to as its Scheduled Operations. It offers non-stop service to Hawai’i from United States gateway cities. As of December 31, 2016, it also provided approximately 160 daily flights between the Hawaiian Islands. The Company operates various charter flights. As of December 31, 2016, the Company’s fleet consisted of 20 Boeing 717-200 aircraft for the Neighbor Island routes, eight Boeing 767-300 aircraft, and 23 Airbus A330-200 aircraft for the North America, International, and charter routes.
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