Two prominent transportation companies, ZTO Express (Cayman) and Grupo Aeroportuario del Sureste, are being compared in terms of overall business performance. Both firms are large-cap entities listed on the New York Stock Exchange, with ZTO Express (NYSE: ZTO) focused on logistics in China and Grupo Aeroportuario del Sureste (NYSE: ASR) managing airports in Mexico. The assessment will cover various factors, including risk, analyst recommendations, earnings, profitability, institutional ownership, dividends, and valuation.
Earnings and Valuation Metrics
A comparison of gross revenue, earnings per share, and valuation metrics reveals significant differences between the two companies. Grupo Aeroportuario del Sureste currently has a consensus price target of $305.00, which suggests a potential downside of 17.54%. In contrast, ZTO Express has a consensus price target of $22.36, indicating a lesser potential downside of 7.30%. Analysts appear to favor ZTO Express in terms of growth potential, as reflected in its stronger consensus rating.
Ownership Structure and Institutional Support
Institutional ownership is another critical factor in evaluating these companies. Approximately 10.6% of Grupo Aeroportuario del Sureste’s shares are held by institutional investors, which indicates moderate confidence from large financial entities. Meanwhile, ZTO Express benefits from higher institutional backing, with 41.7% of its shares held by institutional investors and 41.3% owned by company insiders. This strong institutional ownership often signals a belief in a company’s long-term growth potential.
Risk and volatility also play a significant role in investment decisions. Grupo Aeroportuario del Sureste has a beta of 0.56, meaning its stock price exhibits 44% less volatility than the S&P 500. On the other hand, ZTO Express has a beta of -0.18, reflecting an even lower volatility of 118% less than the S&P 500.
Profitability and Dividends
Profitability is assessed through metrics such as net margins, return on equity, and return on assets. Grupo Aeroportuario del Sureste pays an annual dividend of $37.83 per share, translating to a dividend yield of 10.2%. In contrast, ZTO Express pays a significantly lower annual dividend of $0.58 per share, offering a yield of 2.4%. However, concerns arise regarding Grupo Aeroportuario del Sureste’s sustainability, as it currently pays out 200.6% of its earnings as dividends, which may not be maintainable in the long term. ZTO Express, on the other hand, pays out 38.4% of its earnings, suggesting a more sustainable dividend policy.
Overall, ZTO Express appears to have a more favorable outlook based on analyst ratings, dividend sustainability, and lower volatility. As both companies operate in different segments of the transportation industry, their performances reflect the unique challenges and opportunities within their respective markets.
Grupo Aeroportuario del Sureste was founded in 1996 and is based in Mexico City, managing airports across southeastern Mexico and even extending operations to Puerto Rico and Colombia. ZTO Express, established in 2002 and headquartered in Shanghai, specializes in express delivery services within the People’s Republic of China.
In conclusion, while both companies have their merits, ZTO Express currently demonstrates stronger indicators of growth and financial stability, making it potentially the more favorable investment option in the long-term landscape of the transportation industry.
