Head to Head Comparison: Deutsche Lufthansa (OTCMKTS:DLAKY) vs. Air Canada (OTCMKTS:ACDVF)

Air Canada (OTCMKTS:ACDVF) and Deutsche Lufthansa (OTCMKTS:DLAKY) are both mid-cap transportation companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Institutional & Insider Ownership

0.1% of Air Canada shares are owned by institutional investors. Comparatively, 0.1% of Deutsche Lufthansa shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Air Canada and Deutsche Lufthansa’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Air Canada $13.94 billion 0.62 $128.84 million N/A N/A
Deutsche Lufthansa $42.33 billion 0.18 $2.55 billion N/A N/A

Deutsche Lufthansa has higher revenue and earnings than Air Canada.

Profitability

This table compares Air Canada and Deutsche Lufthansa’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Air Canada 5.85% 22.87% 3.72%
Deutsche Lufthansa 3.82% 13.46% 3.45%

Dividends

Deutsche Lufthansa pays an annual dividend of $0.64 per share and has a dividend yield of 4.0%. Air Canada does not pay a dividend.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Air Canada and Deutsche Lufthansa, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Air Canada 0 1 4 0 2.80
Deutsche Lufthansa 0 8 2 0 2.20

Air Canada currently has a consensus price target of $32.00, indicating a potential downside of 1.44%. Deutsche Lufthansa has a consensus price target of $15.50, indicating a potential downside of 4.08%. Given Air Canada’s stronger consensus rating and higher probable upside, research analysts clearly believe Air Canada is more favorable than Deutsche Lufthansa.

Summary

Air Canada beats Deutsche Lufthansa on 9 of the 12 factors compared between the two stocks.

Air Canada Company Profile

Air Canada provides domestic, U.S. transborder, and international airline services. It offers scheduled passenger services under the Air Canada Vacations and Air Canada Rouge brand name in the Canadian market, the Canada-U.S. transborder market, and in the international market to and from Canada, as well as through capacity purchase agreements on other regional carriers. As of December 31, 2018, the company operated a fleet of 184 aircraft under the Air Canada mainline brand name comprising 91 Boeing and Airbus narrow-body aircraft, 74 Boeing and Airbus wide-body aircraft, and 19 Embraer 190 regional jets; and 53 aircraft under the Air Canada Rouge brand name consisting of 22 Airbus A319 aircraft, 6 Airbus A321 aircraft, and 25 Boeing 767-300 aircraft. It also provides air cargo services in domestic and U.S. transborder routes, as well as on international routes between Canada and markets in Europe, Asia, South America, and Australia. In addition, the company operates, develops, markets, and distributes vacation travel packages in the Caribbean, Mexico, the United States, Europe, Central and South America, South Pacific, Australia, and Asia; and offers cruise packages in North America, Europe, and the Caribbean. Air Canada was founded in 1937 and is based in Saint-Laurent, Canada.

Deutsche Lufthansa Company Profile

Deutsche Lufthansa AG operates as an aviation company in Germany and internationally. It operates through Network Airlines, Point-to-Point Airlines, Logistics, MRO, Catering segments. The Network Airlines segment offers passenger services through a route network of 263 destinations in 86 countries. The Point-to-Point Airlines segment provides passenger services through a route network of 192 destinations in 62 countries. The Logistics segment offers a range of cargo transport services for various cargos, including live animals, valuable cargo, mail, dangerous goods, and temperature-sensitive cargo. This segment serves approximately 300 destinations in approximately 100 countries. The MRO segment provides maintenance, repair, and overhaul services for civilian commercial aircraft. It serves airlines and aircraft leasing companies, operators of VIP jets, and public-sector clients. The Catering segment offers catering, in-flight sales and in-flight entertainment, in-flight service equipment, and the associated logistics, as well as consulting services and operating airport lounges. The company also provides consulting and IT services for the aviation industry; training courses in simulator training, emergency and service drill, and e-learning; business travel management solutions in the area of payment and analysis of corporate travel; and aviation and transport insurance products, as well as insurance brokerage, reinsurance, and risk management services. As of December 31, 2017, it had a fleet of 728 aircraft. Deutsche Lufthansa AG is headquartered in Cologne, Germany.

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