United Continental Holdings (NYSE: UAL) and US Airways Group (NYSE:LCC) are both transportation companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.
Institutional & Insider Ownership
97.6% of United Continental Holdings shares are held by institutional investors. 0.3% of United Continental Holdings shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of recent ratings and price targets for United Continental Holdings and US Airways Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Continental Holdings||0||12||6||0||2.33|
|US Airways Group||0||0||0||0||N/A|
United Continental Holdings currently has a consensus target price of $79.85, indicating a potential upside of 17.45%. Given United Continental Holdings’ higher possible upside, equities analysts clearly believe United Continental Holdings is more favorable than US Airways Group.
This table compares United Continental Holdings and US Airways Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United Continental Holdings||6.09%||29.46%||6.17%|
|US Airways Group||N/A||N/A||N/A|
Valuation and Earnings
This table compares United Continental Holdings and US Airways Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|United Continental Holdings||$37.38 billion||0.55||$6.37 billion||$7.23||9.40|
|US Airways Group||N/A||N/A||N/A||N/A||N/A|
United Continental Holdings has higher revenue and earnings than US Airways Group.
United Continental Holdings beats US Airways Group on 8 of the 8 factors compared between the two stocks.
United Continental Holdings Company Profile
United Continental Holdings, Inc. (UAL) is a holding company and its principal subsidiary is United Air Lines, Inc. (United). The Company transports people and cargo through its mainline operations. It has global air rights in North America, Asia-Pacific, Europe, Middle East, Africa and Latin America. The Company, through United and its regional carriers, operates flights from its hubs at Newark Liberty International Airport (Newark Liberty), Chicago O’Hare International Airport (Chicago O’Hare), Denver International Airport (Denver), George Bush Intercontinental Airport (Houston Bush), Los Angeles International Airport (LAX), A.B. Won Pat International Airport (Guam), San Francisco International Airport (SFO) and Washington Dulles International Airport (Washington Dulles). It has contractual relationships with regional carriers to provide regional jet and turboprop service branded as United Express. These regional operations are an extension of the Company’s mainline network.
US Airways Group Company Profile
US Airways Group, Inc. (US Airways Group) is a holding company whose primary business activity is the operation of a network air carrier through its wholly owned subsidiaries US Airways, Piedmont Airlines, Inc. (Piedmont), PSA Airlines, Inc. (PSA), Material Services Company, Inc. (MSC) and Airways Assurance Limited (AAL). MSC and AAL operate in support of its airline subsidiaries in areas, such as the procurement of aviation fuel and insurance. Effective December 9, 2013, AMR Corp merged with US Airways Group Inc.
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