Singapore Airlines (OTCMKTS:SINGY) and Ryanair (NASDAQ:RYAAY) Critical Analysis

Singapore Airlines (OTCMKTS:SINGY) 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 analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.

Profitability

This table compares Singapore Airlines and Ryanair’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Singapore Airlines	N/A	N/A	N/A
Ryanair	12.14%	21.23%	11.27%

Dividends

Singapore Airlines pays an annual dividend of $0.40 per share and has a dividend yield of 3.8%. Ryanair pays an annual dividend of $1.02 per share and has a dividend yield of 1.9%. Singapore Airlines pays out 117.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ryanair pays out 24.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings for Singapore Airlines and Ryanair, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Singapore Airlines	0	1	0	0	2.00
Ryanair	1	3	6	1	2.64

Ryanair has a consensus price target of $73.97, indicating a potential upside of 35.66%. Given Ryanair’s stronger consensus rating and higher possible upside, analysts plainly believe Ryanair is more favorable than Singapore Airlines.

Valuation and Earnings

This table compares Singapore Airlines and Ryanair”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Singapore Airlines	N/A	N/A	N/A	$0.34	30.86
Ryanair	$18.03 billion	1.57	$2.52 billion	$4.16	13.11

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

Insider & Institutional Ownership

0.0% of Singapore Airlines shares are held by institutional investors. Comparatively, 43.6% of Ryanair shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Ryanair beats Singapore Airlines on 11 of the 13 factors compared between the two stocks.

About Singapore Airlines

Singapore Airlines Limited, together with subsidiaries, provides passenger and cargo air transportation services under the Singapore Airlines and Scoot brands in East Asia, the Americas, Europe, Southwest Pacific, West Asia, and Africa. It operates through The Full-Service Carrier, The Low-Cost Carrier, and Engineering Services segments. The company also offers engineering services, pilot training services, air charters, and tour wholesaling and related services; and refurbishes aircraft galleys. In addition, it provides aircraft maintenance services, including technical and non-technical handling at the airport; maintenance, repair, and overhaul of aircraft and cabin components/systems; repair and overhaul of hydromechanical equipment; aviation insurance; and airframe maintenance and overhaul services, as well as manufactures aircraft cabin parts and tooling for the aerospace industry. Further, the company offers marketing and supporting portal services for the air cargo industry; and reservation service systems, as well as travel-related retail services. Additionally, it provides travel booking and related services through an online portal. As of March 31, 2023, the company operated a fleet of 195 aircrafts, including 188 passenger aircrafts and seven freighters. Singapore Airlines Limited was founded in 1947 and is based in Singapore.

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.