Reviewing American Airlines Group (NASDAQ:AAL) & ANA (OTCMKTS:ALNPY)

American Airlines Group (NASDAQ:AAL) and ANA (OTCMKTS:ALNPY) are both mid-cap transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Profitability

This table compares American Airlines Group and ANA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Airlines Group	0.36%	-9.11%	0.57%
ANA	6.65%	13.79%	4.60%

Volatility and Risk

American Airlines Group has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, ANA has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Insider & Institutional Ownership

52.4% of American Airlines Group shares are held by institutional investors. 0.6% of American Airlines Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares American Airlines Group and ANA”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Airlines Group	$54.63 billion	0.16	$111.00 million	$0.31	43.06
ANA	$16.87 billion	0.48	$1.12 billion	$0.44	7.95

ANA has lower revenue, but higher earnings than American Airlines Group. ANA is trading at a lower price-to-earnings ratio than American Airlines Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for American Airlines Group and ANA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Airlines Group	2	9	6	0	2.24
ANA	0	2	0	0	2.00

American Airlines Group currently has a consensus target price of $14.69, suggesting a potential upside of 10.02%. Given American Airlines Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe American Airlines Group is more favorable than ANA.

Summary

American Airlines Group beats ANA on 8 of the 14 factors compared between the two stocks.

About American Airlines Group

American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. The company provides scheduled air transportation services for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C., as well as through partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo. It operates a mainline fleet of 965 aircraft. The company was formerly known as AMR Corporation and changed its name to American Airlines Group Inc. in December 2013. American Airlines Group Inc. was founded in 1926 and is headquartered in Fort Worth, Texas.

About ANA

ANA Holdings Inc., together with its subsidiaries, provides air transportation services in Japan and internationally. It operates through Air Transportation, Aviation-Related Business, Travel Business, and Trading Business segments. The Air Transportation segment offers regular and irregular air transport of passengers, cargo, etc. on domestic and international routes. The Aviation-Related Business segment provides services incidental to air transportation, such as airport handling and maintenance. The Travel Business develops and sells travel products, as well as plans and sells package travel products. The Trading Business imports and exports aviation-related materials, as well as sells through stores and mail-order channels. The company was formerly known as All Nippon Airways Co., Ltd. and changed its name to ANA Holdings Inc. in April 2013. ANA Holdings Inc. was incorporated in 1920 and is headquartered in Minato, Japan.