Lufthansa (DLAKY) vs. Its Rivals Critical Survey

Lufthansa (OTCMKTS: DLAKY) is one of 24 publicly-traded companies in the “Air transportation, scheduled” industry, but how does it contrast to its peers? We will compare Lufthansa to similar companies based on the strength of its dividends, analyst recommendations, risk, profitability, institutional ownership, earnings and valuation.

Analyst Ratings

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This is a breakdown of recent ratings for Lufthansa and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lufthansa 1 3 3 0 2.29
Lufthansa Competitors 313 1126 1711 143 2.51

As a group, “Air transportation, scheduled” companies have a potential upside of 11.02%. Given Lufthansa’s peers stronger consensus rating and higher probable upside, analysts clearly believe Lufthansa has less favorable growth aspects than its peers.

Dividends

Lufthansa pays an annual dividend of $0.39 per share and has a dividend yield of 1.2%. Lufthansa pays out 9.4% of its earnings in the form of a dividend. As a group, “Air transportation, scheduled” companies pay a dividend yield of 1.6% and pay out 20.5% of their earnings in the form of a dividend.

Insider and Institutional Ownership

0.2% of Lufthansa shares are held by institutional investors. Comparatively, 79.5% of shares of all “Air transportation, scheduled” companies are held by institutional investors. 3.7% of shares of all “Air transportation, scheduled” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Lufthansa and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lufthansa 5.35% 24.59% 4.94%
Lufthansa Competitors 8.39% 27.20% 6.31%

Volatility and Risk

Lufthansa has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Lufthansa’s peers have a beta of 1.16, meaning that their average stock price is 16% more volatile than the S&P 500.

Earnings and Valuation

This table compares Lufthansa and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Lufthansa $40.21 billion $1.97 billion 7.76
Lufthansa Competitors $15.00 billion $962.69 million 9.73

Lufthansa has higher revenue and earnings than its peers. Lufthansa is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Lufthansa peers beat Lufthansa on 12 of the 15 factors compared.

About Lufthansa

Deutsche Lufthansa AG operates as an aviation company in Germany and internationally. It operates through Network Airlines, Point-to-Point Airlines, Logistics, MRO, Catering segments. The Network Airlines segment offers passenger services through a route network of 263 destinations in 86 countries. The Point-to-Point Airlines segment provides passenger services through a route network of 192 destinations in 62 countries. The Logistics segment offers a range of cargo transport services for various cargos, including live animals, valuable cargo, mail, dangerous goods, and temperature-sensitive cargo. This segment serves approximately 300 destinations in approximately 100 countries. The MRO segment provides maintenance, repair, and overhaul services for civilian commercial aircraft. It serves airlines and aircraft leasing companies, operators of VIP jets, and public-sector clients. The Catering segment offers catering, in-flight sales and in-flight entertainment, in-flight service equipment, and the associated logistics, as well as consulting services and operating airport lounges. The company also provides consulting and IT services for the aviation industry; training courses in simulator training, emergency and service drill, and e-learning; business travel management solutions in the area of payment and analysis of corporate travel; and aviation and transport insurance products, as well as insurance brokerage, reinsurance, and risk management services. As of December 31, 2017, it had a fleet of 728 aircraft. Deutsche Lufthansa AG is headquartered in Cologne, Germany.

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