Contrasting Cebu Air (OTCMKTS:CEBUY) & Copa (NYSE:CPA)

Cebu Air (OTCMKTS:CEBUY) and Copa (NYSE:CPA) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.

Profitability

This table compares Cebu Air and Copa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cebu Air	N/A	N/A	N/A
Copa	19.31%	30.81%	12.68%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Cebu Air and Copa, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cebu Air	0	0	0	0	N/A
Copa	0	0	5	1	3.17

Copa has a consensus price target of $148.83, suggesting a potential upside of 52.43%. Given Copa’s higher possible upside, analysts plainly believe Copa is more favorable than Cebu Air.

Insider & Institutional Ownership

70.1% of Copa shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Cebu Air and Copa”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cebu Air	N/A	N/A	N/A	$15.90	0.14
Copa	$3.46 billion	1.11	$514.10 million	$16.34	5.98

Copa has higher revenue and earnings than Cebu Air. Cebu Air is trading at a lower price-to-earnings ratio than Copa, indicating that it is currently the more affordable of the two stocks.

Summary

Copa beats Cebu Air on 10 of the 10 factors compared between the two stocks.

About Cebu Air

Cebu Air, Inc., an airline, provides international and domestic air transportation services. The company offers scheduled air travel services to passengers, as well as airport-to-airport cargo services on its domestic and international routes. It also provides ancillary services, such as cancellation and rebooking options; in-flight merchandising, including sale of duty-free products on international flights; baggage services; and travel-related products and services. In addition, the company offers line maintenance services comprising certification and mechanic assistance; technical ramp, equipment handling; water and toilet servicing; aircraft ground support equipment operation; and light maintenance aircraft checks services. As of December 31, 2023, it operated a fleet of 85 aircrafts. The company was incorporated in 1988 and is headquartered in Pasay City, the Philippines. Cebu Air, Inc. is a subsidiary of CP Air Holdings, Inc.

About Copa

Copa Holdings, S.A., through its subsidiaries, provides airline passenger and cargo services. The company offers approximately 375 daily scheduled flights to 82 destinations in 32 countries in North, Central, and South America, as well as the Caribbean from its Panama City hub. As of December 31, 2023, it operated a fleet of 106 aircraft comprising 76 Boeing 737-Next Generation aircraft, 29 Boeing 737 MAX 9 aircraft, and one Boeing 737-800 Boeing Converted Freighter. The company was founded in 1947 and is based in Panama City, Panama.