Critical Review: Sky Harbour Group (NYSE:SKYH) versus Corporacion America Airports (NYSE:CAAP)

Corporacion America Airports (NYSE:CAAP) and Sky Harbour Group (NYSE:SKYH) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Earnings & Valuation

This table compares Corporacion America Airports and Sky Harbour Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corporacion America Airports	$2.12 billion	1.88	$247.72 million	$1.78	13.57
Sky Harbour Group	$27.54 million	29.41	$18.82 million	($0.18)	-58.72

Corporacion America Airports has higher revenue and earnings than Sky Harbour Group. Sky Harbour Group is trading at a lower price-to-earnings ratio than Corporacion America Airports, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Corporacion America Airports has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Sky Harbour Group has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Corporacion America Airports and Sky Harbour Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corporacion America Airports	0	2	4	0	2.67
Sky Harbour Group	1	0	2	2	3.00

Corporacion America Airports presently has a consensus price target of $30.12, indicating a potential upside of 24.69%. Sky Harbour Group has a consensus price target of $12.75, indicating a potential upside of 20.62%. Given Corporacion America Airports’ higher probable upside, research analysts plainly believe Corporacion America Airports is more favorable than Sky Harbour Group.

Institutional and Insider Ownership

12.9% of Corporacion America Airports shares are owned by institutional investors. Comparatively, 14.7% of Sky Harbour Group shares are owned by institutional investors. 40.7% of Sky Harbour Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Corporacion America Airports and Sky Harbour Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corporacion America Airports	13.58%	16.69%	6.33%
Sky Harbour Group	2.73%	6.45%	1.57%

Summary

Corporacion America Airports beats Sky Harbour Group on 9 of the 15 factors compared between the two stocks.

About Corporacion America Airports

Corporación América Airports S.A., through its subsidiaries, acquires, develops, and operates airport concessions. It operates 52 airports in Latin America, Europe, and Eurasia. The company was formerly known as A.C.I. Airports International S.à r.l. and changed its name to Corporación América Airports S.A. in September 2017. The company was founded in 1998 and is based in Luxembourg City, Luxembourg. Corporación América Airports S.A. is a subsidiary of A.C.I. Airports S.à r.l.

About Sky Harbour Group

Sky Harbour Group Corporation operates as an aviation infrastructure development company in the United States. It develops, leases, and manages general aviation hangars for business aircraft. The company is based in White Plains, New York.