Critical Contrast: Grupo Aeroportuario del Sureste, S.A. de C.V. (ASR) & Macquarie Infrastructure (NYSE:MIC)

Macquarie Infrastructure (NYSE: MIC) and Grupo Aeroportuario del Sureste, S.A. de C.V. (NYSE:ASR) are both mid-cap multi-sector conglomerates companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitabiliy and earnings.

Profitability

This table compares Macquarie Infrastructure and Grupo Aeroportuario del Sureste, S.A. de C.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Macquarie Infrastructure 9.96% 5.46% 2.29%
Grupo Aeroportuario del Sureste, S.A. de C.V. 39.61% 18.02% 13.34%

Analyst Recommendations

This is a summary of recent recommendations for Macquarie Infrastructure and Grupo Aeroportuario del Sureste, S.A. de C.V., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macquarie Infrastructure 0 1 3 0 2.75
Grupo Aeroportuario del Sureste, S.A. de C.V. 1 3 1 0 2.00

Macquarie Infrastructure currently has a consensus price target of $89.33, indicating a potential upside of 17.98%. Grupo Aeroportuario del Sureste, S.A. de C.V. has a consensus price target of $151.00, indicating a potential downside of 29.69%. Given Macquarie Infrastructure’s stronger consensus rating and higher possible upside, equities analysts clearly believe Macquarie Infrastructure is more favorable than Grupo Aeroportuario del Sureste, S.A. de C.V..

Dividends

Macquarie Infrastructure pays an annual dividend of $5.28 per share and has a dividend yield of 7.0%. Grupo Aeroportuario del Sureste, S.A. de C.V. pays an annual dividend of $2.98 per share and has a dividend yield of 1.4%. Macquarie Infrastructure pays out 253.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Grupo Aeroportuario del Sureste, S.A. de C.V. pays out 40.9% of its earnings in the form of a dividend. Macquarie Infrastructure has increased its dividend for 5 consecutive years. Macquarie Infrastructure is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Macquarie Infrastructure has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Grupo Aeroportuario del Sureste, S.A. de C.V. has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Institutional & Insider Ownership

86.8% of Macquarie Infrastructure shares are owned by institutional investors. Comparatively, 33.1% of Grupo Aeroportuario del Sureste, S.A. de C.V. shares are owned by institutional investors. 5.9% of Macquarie Infrastructure shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Macquarie Infrastructure and Grupo Aeroportuario del Sureste, S.A. de C.V.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Macquarie Infrastructure $1.71 billion 3.65 $607.63 million $2.08 36.40
Grupo Aeroportuario del Sureste, S.A. de C.V. $619.76 million 103.96 $358.29 million $7.29 29.46

Macquarie Infrastructure has higher revenue and earnings than Grupo Aeroportuario del Sureste, S.A. de C.V.. Grupo Aeroportuario del Sureste, S.A. de C.V. is trading at a lower price-to-earnings ratio than Macquarie Infrastructure, indicating that it is currently the more affordable of the two stocks.

Summary

Macquarie Infrastructure beats Grupo Aeroportuario del Sureste, S.A. de C.V. on 11 of the 17 factors compared between the two stocks.

Macquarie Infrastructure Company Profile

Macquarie Infrastructure Corporation owns and operates a group of businesses that provide services, such as bulk liquid terminalling and handling services. The Company operates through four segments: International-Matex Tank Terminals (IMTT), Atlantic Aviation, Contracted Power (CP) and MIC Hawaii. Its group of businesses also provides services, such as aircraft fueling, CP generation and utility gas services. Its group of businesses provides services to businesses, government agencies and individuals in the United States. IMTT segment provides bulk liquid terminal services in the United States. As of December 31, 2016, Atlantic Aviation operated Fixed based operations (FBOs) at 69 airports in the United States. The businesses in its CP segment sell electricity to off-takers, pursuant to multi-year contracts. MIC Hawaii segment consists of Hawaii Gas and several smaller businesses. Hawaii Gas consists of a gas utility and a liquefied petroleum gas (LPG) distribution business.

Grupo Aeroportuario del Sureste, S.A. de C.V. Company Profile

Grupo Aeroportuario del Sureste SAB de CV (ASUR) is a Mexico-based holding company. It and its subsidiaries hold concessions to operate, maintain and develop approximately nine airports in the southeast region of Mexico, as well as over 10 airports in Colombia. The Company operates through segments, including Cancun airport and subsidiaries (Cancun), the Villahermosa Airport (Villahermosa), the Merida airport (Merida) and Services. The airports are located in Cancun, Cozumel, Merida, Huatulco, Oaxaca, Veracruz, Villahermosa, Tapachula and Minatitlan, Mexico, and in Medellin, Colombia, among others. Approximately eight Mexican and over 80 international airlines, including the United States-based airlines, such as American Airlines and United Air Lines are operating directly or through code-sharing arrangements in its airports. It provides airport security services at its airports through third-party contractors. It also provides firefighting, rescue and aircraft maintenance services.

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