Contrasting Cebu Air (OTCMKTS:CEBUY) & Delta Air Lines (NYSE:DAL)

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

Institutional and Insider Ownership

69.9% of Delta Air Lines shares are owned by institutional investors. 1.0% of Delta Air Lines shares are owned by 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.

Analyst Ratings

This is a summary of current ratings for Cebu Air and Delta Air Lines, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cebu Air	0	0	0	0	N/A
Delta Air Lines	0	0	12	1	3.08

Delta Air Lines has a consensus price target of $65.40, indicating a potential upside of 16.16%. Given Delta Air Lines’ higher probable upside, analysts clearly believe Delta Air Lines is more favorable than Cebu Air.

Earnings and Valuation

This table compares Cebu Air and Delta Air Lines”s gross revenue, earnings per share 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
Delta Air Lines	$60.31 billion	0.60	$4.61 billion	$6.95	8.10

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

Profitability

This table compares Cebu Air and Delta Air Lines’ 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
Delta Air Lines	7.46%	36.02%	5.32%

Summary

Delta Air Lines beats Cebu Air on 10 of the 11 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 Delta Air Lines

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, Bogota, Lima, Mexico City, London-Heathrow, Paris-Charles de Gaulle, Sao Paulo, Seoul-Incheon, and Tokyo. The company sells its tickets through various distribution channels, including delta.com and the Fly Delta app; acts as a reservations specialists; and operates online travel and traditional brick and mortar agencies. It also provides aircraft maintenance and engineering support, repair, and overhaul services; and vacation packages to third-party consumers. The company operates through a fleet of approximately 1,273 aircrafts. Delta Air Lines, Inc. was founded in 1924 and is based in Atlanta, Georgia.