Copa Holdings, (CPA) & Ryanair Holdings PLC (RYAAY) Critical Analysis

Copa Holdings, (NYSE: CPA) and Ryanair Holdings PLC (NASDAQ:RYAAY) are both mid-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Insider and Institutional Ownership

70.4% of Copa Holdings, shares are owned by institutional investors. Comparatively, 38.7% of Ryanair Holdings PLC shares are owned by institutional investors. 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.

Risk & Volatility

Copa Holdings, has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500. Comparatively, Ryanair Holdings PLC has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Copa Holdings, and Ryanair Holdings PLC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Copa Holdings, 0 4 7 0 2.64
Ryanair Holdings PLC 2 2 8 0 2.50

Copa Holdings, presently has a consensus target price of $108.80, indicating a potential downside of 13.01%. Ryanair Holdings PLC has a consensus target price of $96.00, indicating a potential downside of 16.59%. Given Copa Holdings,’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Copa Holdings, is more favorable than Ryanair Holdings PLC.

Profitability

This table compares Copa Holdings, and Ryanair Holdings PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Copa Holdings, 14.17% 14.98% 7.17%
Ryanair Holdings PLC 21.44% 34.02% 13.43%

Dividends

Copa Holdings, pays an annual dividend of $2.04 per share and has a dividend yield of 1.6%. Ryanair Holdings PLC does not pay a dividend. Copa Holdings, pays out 25.8% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Copa Holdings, and Ryanair Holdings PLC’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Copa Holdings, $2.37 billion 2.24 $518.91 million $7.91 15.81
Ryanair Holdings PLC N/A N/A N/A $6.48 17.76

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

Summary

Copa Holdings, beats Ryanair Holdings PLC on 8 of the 13 factors compared between the two stocks.

Copa Holdings, Company Profile

Copa Holdings, S.A. is a provider of airline passenger and cargo service through its principal operating subsidiaries, Compania Panamena de Aviacion, S. A. (Copa Airlines) and AeroRepublica, S. A. (Copa Colombia). The Company operates through air transportation segment. Copa Airlines operates from its position located in the Republic of Panama. Copa Airlines provides international air transportation for passengers, cargo and mail, operating from its Panama City hub in the Republic of Panama. Copa Colombia provides service within Colombia and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mexico, Cuba, Guatemala and Costa Rica. Copa Colombia provides domestic and international air transportation for passengers, cargo and mail with a point-to-point route network. Its subsidiary, Oval Financial Leasing, Ltd., controls the special purpose entities that have a beneficial interest in the majority of its fleet.

Ryanair Holdings PLC Company Profile

Ryanair Holdings plc (Ryanair Holdings) is a holding company for Ryanair Limited (Ryanair). Ryanair operates an ultra-low fare, scheduled-passenger airline serving short-haul, point-to-point routes between Ireland, the United Kingdom, Continental Europe, Morocco and Israel. Ryanair provides various ancillary services and engages in other activities connected with its core air passenger service, including non-flight scheduled services, Internet-related services, and the in-flight sale of beverages, food and merchandise. Ryanair markets accommodation services and travel insurance through its Website. It provides hotel and accommodation services. Ryanair provides its own aircraft and passenger handling and ticketing services at Dublin Airport. As of June 30, 2016, Ryanair had a principal fleet of over 350 Boeing 737-800 aircraft and offered over 2,000 scheduled short-haul flights per day serving approximately 200 airports throughout Europe.

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