Allegiant Travel (ALGT) vs. Its Peers Critical Analysis

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

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.

Insider and Institutional Ownership

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

Valuation and Earnings

This table compares Allegiant Travel and its rivals top-line revenue, earnings per share 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 rivals have higher revenue and earnings than Allegiant Travel. Allegiant Travel is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current recommendations for Allegiant Travel and its rivals, as reported 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 currently 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 possible upside, equities analysts clearly believe Allegiant Travel is more favorable than its rivals.

Profitability

This table compares Allegiant Travel and its rivals’ 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 rivals have a beta of 18.44, suggesting that their average share price is 1,744% more volatile than the S&P 500.

Summary

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

Allegiant Travel Company Profile

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.