LATAM Airlines Group (NYSE:LTM) & International Consolidated Airlines Group (OTCMKTS:ICAGY) Head-To-Head Review

International Consolidated Airlines Group (OTCMKTS:ICAGY) and LATAM Airlines Group (NYSE:LTM) are both large-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Earnings & Valuation

This table compares International Consolidated Airlines Group and LATAM Airlines Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Consolidated Airlines Group	$37.57 billion	0.68	$3.78 billion	$3.82	3.05
LATAM Airlines Group	$14.49 billion	0.94	$1.46 billion	$5.44	8.76

International Consolidated Airlines Group has higher revenue and earnings than LATAM Airlines Group. International Consolidated Airlines Group is trading at a lower price-to-earnings ratio than LATAM Airlines Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares International Consolidated Airlines Group and LATAM Airlines Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Consolidated Airlines Group	9.21%	79.81%	14.56%
LATAM Airlines Group	9.69%	101.21%	8.80%

Dividends

International Consolidated Airlines Group pays an annual dividend of $0.19 per share and has a dividend yield of 1.6%. LATAM Airlines Group pays an annual dividend of $0.14 per share and has a dividend yield of 0.3%. International Consolidated Airlines Group pays out 5.0% of its earnings in the form of a dividend. LATAM Airlines Group pays out 2.6% 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.

Analyst Ratings

This is a summary of current ratings for International Consolidated Airlines Group and LATAM Airlines Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Consolidated Airlines Group	1	0	1	0	2.00
LATAM Airlines Group	0	2	6	0	2.75

LATAM Airlines Group has a consensus target price of $66.27, suggesting a potential upside of 38.99%. Given LATAM Airlines Group’s stronger consensus rating and higher possible upside, analysts plainly believe LATAM Airlines Group is more favorable than International Consolidated Airlines Group.

Risk and Volatility

International Consolidated Airlines Group has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, LATAM Airlines Group has a beta of 3.87, meaning that its share price is 287% more volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of International Consolidated Airlines Group shares are owned by institutional investors. 7.8% of LATAM Airlines Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

LATAM Airlines Group beats International Consolidated Airlines Group on 11 of the 16 factors compared between the two stocks.

About International Consolidated Airlines Group

International Consolidated Airlines Group S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the United Kingdom, Spain, the United States, and rest of the world. It also provides aircraft leasing, aircraft maintenance, tour operation, air freight operations, call centre, ground handling, trustee, retail, IT, finance, procurement, storage and custody, aircraft technical assistance, human resources support, and airport infrastructure development services; and manages airline loyalty programmes. The company operates under the British Airways, Iberia, Vueling, Aer Lingus, and LEVEL brands. It operates a fleet of 582 aircrafts. The company was incorporated in 2009 and is headquartered in Harmondsworth, United Kingdom.

About LATAM Airlines Group

LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Peru, Argentina, the United States, Europe, Colombia, Brazil, Ecuador, Chile, the Asia Pacific, and rest of Latin America. The company operates in two segments, Air Transportation; and Multiplus Coalition and Loyalty Program. It provides passenger transport services to approximately 140 destinations in 25 countries with a fleet of 322 aircrafts, well as operates loyalty programs. 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 based in Santiago, Chile.