Analyzing ANA (OTCMKTS:ALNPY) and Copa (NYSE:CPA)

Copa (NYSE:CPA – Get Free Report) and ANA (OTCMKTS:ALNPY – Get Free Report) are both mid-cap transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Institutional & Insider Ownership

70.1% of Copa shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Copa pays an annual dividend of $6.84 per share and has a dividend yield of 6.0%. ANA pays an annual dividend of $0.06 per share and has a dividend yield of 1.6%. Copa pays out 42.0% of its earnings in the form of a dividend. ANA pays out 14.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Copa has increased its dividend for 2 consecutive years. Copa is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Copa and ANA, as provided by MarketBeat.

Copa presently has a consensus price target of $164.22, suggesting a potential upside of 44.01%. Given Copa’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Copa is more favorable than ANA.

Risk & Volatility

Copa has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, ANA has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Earnings and Valuation

This table compares Copa and ANA”s revenue, earnings per share and valuation.

ANA has higher revenue and earnings than Copa. Copa is trading at a lower price-to-earnings ratio than ANA, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Copa and ANA’s net margins, return on equity and return on assets.

Summary

Copa beats ANA on 13 of the 17 factors compared between the two stocks.

About Copa

(Get Free Report)

Copa Holdings, S.A., through its subsidiaries, provides airline passenger and cargo services. The company offers approximately 375 daily scheduled flights to 82 destinations in 32 countries in North, Central, and South America, as well as the Caribbean from its Panama City hub. As of December 31, 2023, it operated a fleet of 106 aircraft comprising 76 Boeing 737-Next Generation aircraft, 29 Boeing 737 MAX 9 aircraft, and one Boeing 737-800 Boeing Converted Freighter. The company was founded in 1947 and is based in Panama City, Panama.

About ANA

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ANA Holdings Inc., together with its subsidiaries, provides air transportation services in Japan and internationally. It operates through Air Transportation, Aviation-Related Business, Travel Business, and Trading Business segments. The Air Transportation segment offers regular and irregular air transport of passengers, cargo, etc. on domestic and international routes. The Aviation-Related Business segment provides services incidental to air transportation, such as airport handling and maintenance. The Travel Business develops and sells travel products, as well as plans and sells package travel products. The Trading Business imports and exports aviation-related materials, as well as sells through stores and mail-order channels. The company was formerly known as All Nippon Airways Co., Ltd. and changed its name to ANA Holdings Inc. in April 2013. ANA Holdings Inc. was incorporated in 1920 and is headquartered in Minato, Japan.