Critical Analysis: Royal Mail (OTCMKTS:ROYMY) & Grupo Aeroportuario del Centro Norte (NASDAQ:OMAB)

Grupo Aeroportuario del Centro Norte (NASDAQ:OMAB) and Royal Mail (OTCMKTS:ROYMY) are both mid-cap transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Earnings and Valuation

This table compares Grupo Aeroportuario del Centro Norte and Royal Mail”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Aeroportuario del Centro Norte	$832.66 million	5.71	$296.74 million	$5.98	18.68
Royal Mail	$15.94 billion	0.25	$67.88 million	N/A	N/A

Grupo Aeroportuario del Centro Norte has higher earnings, but lower revenue than Royal Mail.

Risk & Volatility

Grupo Aeroportuario del Centro Norte has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Royal Mail has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Dividends

Grupo Aeroportuario del Centro Norte pays an annual dividend of $5.09 per share and has a dividend yield of 4.6%. Royal Mail pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. Grupo Aeroportuario del Centro Norte pays out 85.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

9.5% of Grupo Aeroportuario del Centro Norte shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Grupo Aeroportuario del Centro Norte and Royal Mail, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Aeroportuario del Centro Norte	0	2	2	0	2.50
Royal Mail	0	0	0	0	0.00

Grupo Aeroportuario del Centro Norte currently has a consensus price target of $134.00, indicating a potential upside of 19.93%. Given Grupo Aeroportuario del Centro Norte’s stronger consensus rating and higher probable upside, analysts clearly believe Grupo Aeroportuario del Centro Norte is more favorable than Royal Mail.

Profitability

This table compares Grupo Aeroportuario del Centro Norte and Royal Mail’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Aeroportuario del Centro Norte	32.67%	49.46%	17.40%
Royal Mail	N/A	N/A	N/A

Summary

Grupo Aeroportuario del Centro Norte beats Royal Mail on 10 of the 13 factors compared between the two stocks.

About Grupo Aeroportuario del Centro Norte

Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., together with its subsidiaries, holds concessions to develop, operate, and maintain airports in Mexico. The company operates 13 international airports in Monterrey, Acapulco, Mazatlán, Zihuatanejo, Ciudad Juárez, Reynosa, Chihuahua, Culiacán, Durango, San Luis Potosí, Tampico, Torreón, and Zacatecas cities. It also operates the NH Collection Hotel in Terminal 2 of the Mexico City International Airport, and a hotel under the Hilton Garden Inn name at the Monterrey International Airport. In addition, the company provides aeronautical services, which include passenger, aircraft landing and parking, boarding and unloading, passenger walkway, and airport security services. Further, it offers complementary services that comprise leasing of space to airlines, cargo handling, baggage-screening, permanent and non-permanent ground transportation, and access rights services; non-aeronautical services, such as leasing of space at its airports to retailers, restaurants, and other commercial tenants, as well as maintaining of parking facilities and advertising; and diversification services, which consists of operation and lease of the industrial park and real estate services, as well as hotel and air cargo logistics services. Additionally, the company provides construction services. It has a strategic alliance with VYNMSA Desarrollo Inmobiliario, S.A. de C.V. to build and operate an industrial park at the Monterrey airport. The company was founded in 1998 and is headquartered in Mexico City, Mexico.

About Royal Mail

International Distributions Services plc, together with its subsidiaries, operates as a universal postal service provider in the United Kingdom and internationally. The company offers parcels and letter delivery services under the Royal Mail and Parcelforce Worldwide brands. It also provides services for the collection, sorting, and delivery of parcels and letters. In addition, the company operates ground-based parcel delivery networks in Europe that covers 40 countries and nation states. Further, it provides express parcel delivery and logistics services. Additionally, the company engages in property holdings and facilities management activities. It serves consumers, and small and medium-sized enterprises. The company was formerly known as Royal Mail plc and changed its name to International Distributions Services plc in October 2022. International Distributions Services plc was founded in 1516 and is based in London, the United Kingdom.