Deutsche Lufthansa (OTCMKTS:DLAKY) versus Ryanair (NASDAQ:RYAAY) Financial Contrast

Deutsche Lufthansa (OTCMKTS:DLAKY) and Ryanair (NASDAQ:RYAAY) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Valuation and Earnings

This table compares Deutsche Lufthansa and Ryanair”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Lufthansa	$44.79 billion	0.22	$1.51 billion	$0.67	12.03
Ryanair	$18.03 billion	1.54	$2.52 billion	$4.16	12.91

Ryanair has lower revenue, but higher earnings than Deutsche Lufthansa. Deutsche Lufthansa is trading at a lower price-to-earnings ratio than Ryanair, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Deutsche Lufthansa and Ryanair, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Lufthansa	5	1	0	1	1.57
Ryanair	1	4	6	1	2.58

Ryanair has a consensus target price of $73.97, suggesting a potential upside of 37.70%. Given Ryanair’s stronger consensus rating and higher probable upside, analysts plainly believe Ryanair is more favorable than Deutsche Lufthansa.

Insider and Institutional Ownership

43.6% of Ryanair shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Deutsche Lufthansa and Ryanair’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deutsche Lufthansa	1.63%	5.74%	1.38%
Ryanair	12.14%	21.23%	11.27%

Volatility and Risk

Deutsche Lufthansa has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Ryanair has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Dividends

Deutsche Lufthansa pays an annual dividend of $0.26 per share and has a dividend yield of 3.2%. Ryanair pays an annual dividend of $1.18 per share and has a dividend yield of 2.2%. Deutsche Lufthansa pays out 38.8% of its earnings in the form of a dividend. Ryanair pays out 28.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Ryanair beats Deutsche Lufthansa on 13 of the 15 factors compared between the two stocks.

About Deutsche Lufthansa

Deutsche Lufthansa AG operates as an aviation company worldwide. It operates in three segments: Passenger Airlines; Logistics; and Maintenance, Repair and Overhaul Services (MRO). The Passenger Airlines segment offers products and services to passengers of Lufthansa Airlines, SWISS, Austrian Airlines, Brussels Airlines, and Eurowings. Its Logistics segment offers airfreight container management, urgent shipments, and customs clearance services; and e-commerce solutions. The MRO segment provides maintenance, repair, and overhaul services for civil commercial aircraft serving original equipment manufacturers, aircraft leasing companies, operators of VIP jets, government, armed forces, and airlines. The company also offers corporate payment and billing services; vocational and professional training for cockpit and cabin crew; and IT solutions. As of December 31, 2023, it had a fleet of 721 aircraft. Deutsche Lufthansa AG was founded in 1926 and is headquartered in Cologne, Germany.

About Ryanair

Ryanair Holdings plc, together with its subsidiaries, provides scheduled-passenger airline services in Ireland, the United Kingdom, Italy, Spain, and internationally. It is also involved in the provision of various ancillary services, such as non-flight scheduled and Internet-related services, as well as in-flight sale of beverages, food, duty-free, and merchandise; and markets car hire, travel insurance, and accommodation services through its website and mobile app. In addition, the company offers aircraft and passenger handling, ticketing, and maintenance and repair services; and markets car parking, fast-track, airport transfers, attractions, and activities on its website and mobile app, as well as sells gift vouchers. Ryanair Holdings plc was incorporated in 1996 and is headquartered in Swords, Ireland.