Allegiant Travel (ALGT) versus Its Peers Financial Comparison

Allegiant Travel (NASDAQ:ALGT) is one of 78 public companies in the “Passenger Airlines” industry, but how does it contrast to its competitors? We will compare Allegiant Travel to related businesses based on the strength of its analyst recommendations, institutional ownership, risk, earnings, dividends, profitability and valuation.

Institutional & Insider Ownership

85.8% of Allegiant Travel shares are held by institutional investors. Comparatively, 42.0% of shares of all “Passenger Airlines” companies are held by institutional investors. 12.8% of Allegiant Travel shares are held by company insiders. Comparatively, 10.5% of shares of all “Passenger Airlines” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Allegiant Travel and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegiant Travel	1	4	9	1	2.67
Allegiant Travel Competitors	1527	4066	6689	356	2.46

Allegiant Travel presently has a consensus price target of $125.15, suggesting a potential upside of 35.29%. As a group, “Passenger Airlines” companies have a potential upside of 5.40%. Given Allegiant Travel’s stronger consensus rating and higher probable upside, research analysts plainly believe Allegiant Travel is more favorable than its competitors.

Dividends

Allegiant Travel pays an annual dividend of $2.40 per share and has a dividend yield of 2.6%. Allegiant Travel pays out 73.6% of its earnings in the form of a dividend. As a group, “Passenger Airlines” companies pay a dividend yield of 1.5% and pay out 23.2% of their earnings in the form of a dividend.

Profitability

This table compares Allegiant Travel and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allegiant Travel	1.65%	11.95%	3.18%
Allegiant Travel Competitors	-8.87%	4.80%	1.10%

Volatility & Risk

Allegiant Travel has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500. Comparatively, Allegiant Travel’s competitors have a beta of 18.44, suggesting that their average share price is 1,744% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Allegiant Travel	$3.29 billion	-$44.70 million	28.38
Allegiant Travel Competitors	$15.30 billion	$637.69 million	19.86

Allegiant Travel’s competitors have higher revenue and earnings than Allegiant Travel. Allegiant Travel 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.

Summary

Allegiant Travel beats its competitors on 11 of the 15 factors compared.

About Allegiant Travel

Allegiant Travel Company is a leisure-focused travel company best known for operating Allegiant Air, a low-cost airline. The airline offers scheduled, nonstop flights connecting smaller and midsize U.S. cities with popular vacation destinations, along with optional services such as seat selection and baggage allowances. Allegiant’s route network is concentrated in the United States, with service tailored to leisure travelers and demand that can vary by season. The company also offers travel-related products, including hotel and rental-car bookings, to complement its flights.