Comparing Allegiant Travel (NASDAQ:ALGT) and Qantas Airways (OTCMKTS:QUBSF)

Allegiant Travel (NASDAQ:ALGT) and Qantas Airways (OTCMKTS:QUBSF) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Earnings and Valuation

This table compares Allegiant Travel and Qantas Airways”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allegiant Travel	$2.61 billion	0.91	-$44.70 million	$1.41	61.31
Qantas Airways	N/A	N/A	N/A	($1.28)	-5.45

Qantas Airways has lower revenue, but higher earnings than Allegiant Travel. Qantas Airways is trading at a lower price-to-earnings ratio than Allegiant Travel, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Allegiant Travel and Qantas Airways, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegiant Travel	1	5	9	0	2.53
Qantas Airways	0	0	0	0	0.00

Allegiant Travel presently has a consensus price target of $127.00, suggesting a potential upside of 46.91%. Given Allegiant Travel’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Allegiant Travel is more favorable than Qantas Airways.

Profitability

This table compares Allegiant Travel and Qantas Airways’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allegiant Travel	0.90%	12.69%	3.08%
Qantas Airways	N/A	N/A	N/A

Insider and Institutional Ownership

85.8% of Allegiant Travel shares are held by institutional investors. Comparatively, 23.1% of Qantas Airways shares are held by institutional investors. 12.8% of Allegiant Travel shares are held by company insiders. 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.

Summary

Allegiant Travel beats Qantas Airways on 11 of the 11 factors compared between the two stocks.

About Allegiant Travel

Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited-frequency, nonstop flights between under-served cities and leisure destinations. As of February 1, 2024, it operated a fleet of 126 Airbus A320 series aircraft. The company also provides air-related services and products in conjunction with air transportation, including baggage fees, advance seat assignments, travel protection products, priority boarding, a customer convenience fee, food and beverage purchases on board, and other air-related services, as well as use of its call center for purchases. In addition, it offers third party travel products, such as hotel rooms and ground transportation, such as rental cars and hotel shuttle products; and air transportation services through fixed fee agreements and charter service on a year-round and ad-hoc basis. Further, the company operates a golf course. Allegiant Travel Company was founded in 1997 and is based in Las Vegas, Nevada.

About Qantas Airways

Qantas Airways Limited provides air transportation services in Australia and internationally. The company operates through Qantas Domestic, Qantas International, Jetstar Group, and Qantas Loyalty segments. It offers passenger flying, and air cargo and express freight services; and customer loyalty recognition programs. The company operates a fleet of aircraft under the Qantas and Jetstar brands. Qantas Airways Limited was founded in 1920 and is based in Mascot, Australia.