Financial Survey: Grupo Aeroportuario del Sureste (NYSE:ASR) and SATS (OTCMKTS:SPASF)

SATS (OTCMKTS:SPASF) and Grupo Aeroportuario del Sureste (NYSE:ASR) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Profitability

This table compares SATS and Grupo Aeroportuario del Sureste’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SATS	N/A	N/A	N/A
Grupo Aeroportuario del Sureste	26.07%	21.32%	11.53%

Insider and Institutional Ownership

18.8% of SATS shares are held by institutional investors. Comparatively, 10.6% of Grupo Aeroportuario del Sureste shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

SATS pays an annual dividend of $0.13 per share and has a dividend yield of 3.9%. Grupo Aeroportuario del Sureste pays an annual dividend of $19.84 per share and has a dividend yield of 7.6%. SATS pays out 83.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Grupo Aeroportuario del Sureste pays out 106.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for SATS and Grupo Aeroportuario del Sureste, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SATS	0	0	0	0	0.00
Grupo Aeroportuario del Sureste	2	2	4	1	2.44

Grupo Aeroportuario del Sureste has a consensus target price of $324.50, suggesting a potential upside of 23.66%. Given Grupo Aeroportuario del Sureste’s stronger consensus rating and higher possible upside, analysts clearly believe Grupo Aeroportuario del Sureste is more favorable than SATS.

Valuation & Earnings

This table compares SATS and Grupo Aeroportuario del Sureste”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SATS	N/A	N/A	N/A	$0.16	21.15
Grupo Aeroportuario del Sureste	$37.31 billion	0.21	$547.52 million	$18.59	14.12

Grupo Aeroportuario del Sureste has higher revenue and earnings than SATS. Grupo Aeroportuario del Sureste is trading at a lower price-to-earnings ratio than SATS, indicating that it is currently the more affordable of the two stocks.

Summary

Grupo Aeroportuario del Sureste beats SATS on 10 of the 13 factors compared between the two stocks.

About SATS

SATS Ltd., an investment holding company, provides gateway services and food solutions in Singapore, Asia Pacific, the United States, Europe, Middle East, Africa, and internationally. It operates through three segments: Food Solutions, Gateway Services, and Others. The Food Solutions segment offers inflight and institutional catering; food processing, distribution services, and airline laundry services. Its Gateway Services segment provides airport services, which include airfreight handling services, passenger services, aviation security services, baggage handling services, and apron services, as well as cruise terminal services; and manages and operates marine bay cruise center. The Other Services segment provides rental and other services. In addition, the company offers air cargo handling, travel retail, security, passenger and private jet services; linen and laundry; training; food services-solution and distribution; commercial, institutional and aviation catering. It serves airline, hospitality, healthcare, food, air transport, cruise, events, education, and government agencies; and airfreight and logistics industries. The company was formerly known as Singapore Airport Terminal Services Limited and changed its name to SATS Ltd. In July 2010. SATS Ltd. was incorporated in 1972 and is headquartered in Singapore.

About Grupo Aeroportuario del Sureste

Grupo Aeroportuario del Sureste, S. A. B. de C. V. holds concessions to operate, maintain, and develop airports in the southeast region of Mexico. The company operates airports that are located in the cities of Cancún, Cozumel, Mérida, Huatulco, Oaxaca, Veracruz, Villahermosa, Tapachula, and Minatitlán. It provides aeronautical services, which include passenger, aircraft landing and parking, passenger walkway, and airport security services. The company also offers non-aeronautical services, such as leasing of space at its airports to retailers, restaurants, airlines, and other commercial tenants; catering, handling, and ground transportation services, as well as engages in the various commercial operations. In addition, it holds concessions to operate the Luis Muñoz Marín International Airport in San Juan, Puerto Rico; and various airports in Colombia, including the Enrique Olaya Herrera Airport in Medellín, the José María Córdova International Airport in Rionegro, the Los Garzones Airport in Montería, the Antonio Roldán Betancourt Airport in Carepa, the El Caraño Airport in Quibdó, and the Las Brujas Airport in Corozal. Grupo Aeroportuario del Sureste, S. A. B. de C. V. was founded in 1996 and is headquartered in Mexico City, Mexico.