Grupo Aeroportuario del Centro Norte (NASDAQ:OMAB – Get Free Report) and Corporacion America Airports (NYSE:CAAP – Get Free Report) are both mid-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Grupo Aeroportuario del Centro Norte and Corporacion America Airports, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grupo Aeroportuario del Centro Norte | 1 | 3 | 1 | 0 | 2.00 |
| Corporacion America Airports | 1 | 1 | 3 | 0 | 2.40 |
Grupo Aeroportuario del Centro Norte currently has a consensus price target of $134.00, suggesting a potential upside of 20.06%. Corporacion America Airports has a consensus price target of $30.50, suggesting a potential upside of 20.89%. Given Corporacion America Airports’ stronger consensus rating and higher possible upside, analysts plainly believe Corporacion America Airports is more favorable than Grupo Aeroportuario del Centro Norte.
Institutional and Insider Ownership
9.5% of Grupo Aeroportuario del Centro Norte shares are held by institutional investors. Comparatively, 13.0% of Corporacion America Airports shares are held by institutional investors. 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.
Dividends
Grupo Aeroportuario del Centro Norte pays an annual dividend of $5.09 per share and has a dividend yield of 4.6%. Corporacion America Airports pays an annual dividend of $0.91 per share and has a dividend yield of 3.6%. Grupo Aeroportuario del Centro Norte pays out 80.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Corporacion America Airports pays out 51.1% of its earnings in the form of a dividend.
Profitability
This table compares Grupo Aeroportuario del Centro Norte and Corporacion America Airports’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grupo Aeroportuario del Centro Norte | 31.69% | 49.38% | 16.89% |
| Corporacion America Airports | 13.58% | 16.69% | 6.33% |
Valuation & Earnings
This table compares Grupo Aeroportuario del Centro Norte and Corporacion America Airports”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grupo Aeroportuario del Centro Norte | $17.26 billion | 0.28 | $296.74 million | $6.33 | 17.63 |
| Corporacion America Airports | $1.96 billion | 2.12 | $247.72 million | $1.78 | 14.17 |
Grupo Aeroportuario del Centro Norte has higher revenue and earnings than Corporacion America Airports. Corporacion America Airports is trading at a lower price-to-earnings ratio than Grupo Aeroportuario del Centro Norte, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Grupo Aeroportuario del Centro Norte has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Corporacion America Airports has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.
Summary
Grupo Aeroportuario del Centro Norte beats Corporacion America Airports on 8 of the 15 factors compared between the two stocks.
About Grupo Aeroportuario del Centro Norte
Grupo Aeroportuario del Centro Norte, known as OMA, operates and manages a network of airports in Mexico. Its activities include airport operations, infrastructure maintenance and the provision of facilities and services for airlines, passengers and cargo users. The company’s 13 airports serve cities including Monterrey, Chihuahua, Culiacán, Mazatlán, Acapulco and Ciudad Juárez. Its network connects central and northern Mexico with domestic and international destinations. In addition to aviation-related services, OMA generates business through airport commercial areas and other passenger services, such as retail, food and beverage, and parking.
About Corporacion America Airports
Corporación América Airports S.A. is an airport operator that develops, manages and operates airport concessions. Its services include airport operations and maintenance, passenger and cargo facilities, and commercial activities such as retail, food service, parking and other offerings for travelers and airport users. The company’s operations span Latin America and Europe, including Argentina, Uruguay, Ecuador, Armenia and Italy. Its portfolio includes airports serving major cities as well as regional destinations, with revenue-generating activities both directly related to aviation and tied to airport retail and other services.
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