Comparing Delta Air Lines (NYSE:DAL) and LATAM Airlines Group (OTCMKTS:LTMAQ)

Delta Air Lines (NYSE:DALGet Rating) and LATAM Airlines Group (OTCMKTS:LTMAQGet Rating) are both transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.

Profitability

This table compares Delta Air Lines and LATAM Airlines Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Delta Air Lines 1.47% -41.80% -1.53%
LATAM Airlines Group -77.14% N/A -32.53%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Delta Air Lines and LATAM Airlines Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Delta Air Lines 0 3 11 1 2.87
LATAM Airlines Group 1 0 0 0 1.00

Delta Air Lines currently has a consensus target price of $52.47, indicating a potential upside of 73.39%. Given Delta Air Lines’ stronger consensus rating and higher probable upside, analysts plainly believe Delta Air Lines is more favorable than LATAM Airlines Group.

Institutional & Insider Ownership

63.2% of Delta Air Lines shares are owned by institutional investors. Comparatively, 46.8% of LATAM Airlines Group shares are owned by institutional investors. 0.6% of Delta Air Lines shares are owned by company insiders. Comparatively, 7.8% of LATAM Airlines Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Delta Air Lines and LATAM Airlines Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Delta Air Lines $29.90 billion 0.65 $280.00 million $0.79 38.30
LATAM Airlines Group $4.88 billion N/A -$4.65 billion ($7.58) -0.05

Delta Air Lines has higher revenue and earnings than LATAM Airlines Group. LATAM Airlines Group 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.

Risk & Volatility

Delta Air Lines has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, LATAM Airlines Group has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500.

Summary

Delta Air Lines beats LATAM Airlines Group on 11 of the 14 factors compared between the two stocks.

About Delta Air Lines (Get Rating)

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, Mexico City, London-Heathrow, Paris-Charles de Gaulle, and Seoul-Incheon. The company sells its tickets through various distribution channels, including delta.com and the Fly Delta app, reservations, online travel agencies, traditional brick and mortar, and other agencies. It also provides aircraft maintenance and engineering support, repair, and overhaul services; and vacation packages to third-party consumers, as well as aircraft charters, and management and programs. The company operates through a fleet of approximately 1,200 aircrafts. Delta Air Lines, Inc. was founded in 1924 and is based in Atlanta, Georgia.

About LATAM Airlines Group (Get Rating)

LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Chile, Peru, Argentina, the United States, Europe, Colombia, Brazil, Ecuador, the Asia Pacific, and rest of Latin America. The company provides passenger transportation services to approximately 129 destinations in 18 countries, as well as cargo services to approximately 137 destinations in 20 countries; and operates loyalty programs. As of December 31, 2021, it operated a fleet of 303 aircraft, including 297 passenger aircraft and 13 cargo aircraft; and subleased 1 cargo aircraft to third parties. The company was formerly known as LAN Airlines S.A. and changed its name to LATAM Airlines Group S.A. in June 2012. LATAM Airlines Group S.A. was founded in 1929 and is headquartered in Santiago, Chile. On May 26, 2020, LATAM Airlines Group S.A., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.

Want More Great Investing Ideas?

Receive News & Ratings for Delta Air Lines Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Delta Air Lines and related companies with MarketBeat.com's FREE daily email newsletter.