Reviewing Transat A.T. (OTCMKTS:TRZBF) & NextTrip (NASDAQ:NTRP)

Transat A.T. (OTCMKTS:TRZBF) and NextTrip (NASDAQ:NTRP) are both consumer cyclical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Valuation & Earnings

This table compares Transat A.T. and NextTrip”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transat A.T.	N/A	N/A	N/A	$0.59	2.56
NextTrip	$1.05 million	30.34	-$10.12 million	($1.41)	-2.61

Transat A.T. has higher earnings, but lower revenue than NextTrip. NextTrip is trading at a lower price-to-earnings ratio than Transat A.T., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Transat A.T. and NextTrip’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transat A.T.	N/A	N/A	N/A
NextTrip	-1,323.22%	-298.91%	-139.68%

Institutional and Insider Ownership

62.6% of Transat A.T. shares are held by institutional investors. Comparatively, 3.8% of NextTrip shares are held by institutional investors. 44.5% of NextTrip shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Transat A.T. and NextTrip, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transat A.T.	1	1	1	0	2.00
NextTrip	1	1	0	0	1.50

NextTrip has a consensus price target of $5.00, suggesting a potential upside of 35.87%. Given NextTrip’s higher probable upside, analysts clearly believe NextTrip is more favorable than Transat A.T..

Summary

Transat A.T. beats NextTrip on 8 of the 11 factors compared between the two stocks.

About Transat A.T.

Transat A.T. Inc., together with its subsidiaries, engages in the leisure travel business primarily in Europe and the Caribbean. It offers vacation packages, hotel stays, and air travel services under the Transat and Air Transat brands. The company also offers air transportation services; outgoing tours; and destination services, including hospitality and representation, passenger transfers, excursions, tours, sports, and other activities, as well as specialty services, such as destination weddings, teambuilding, etc. In addition, it engages in the retail distribution activities, which includes providing advice to travelers. As of October 31, 2023, it had 13 Airbus A330s, 15 Airbus A321LRs, and 8 Airbus A321ceos fleets. Transat A.T. Inc. was incorporated in 1987 and is headquartered in Montreal, Canada.

About NextTrip

NextTrip, Inc., through its subsidiaries, engages in the provision of travel technology solutions in the United States. The company offers NXT2.0, a booking engine technology platform, which provides travel distributors access to an inventory. It is also involved in the provision of online leisure travel agency services for booking hotels, flights, and curated vacations. The company was formerly known as Sigma Additive Solutions, Inc. and changed its name to NextTrip, Inc. in March 2024. NextTrip, Inc. is based in Sunrise, Florida.