Grupo Aeroportuario del Sureste (ADR) (ASR): Opportunity in Mexico’s Airport Operators

Aeronautical revenues increased 7.5%, principally as a result of the growth in passenger traffic. Non-aeronautical revenues increased 20.9%.

Terminal passenger traffic increased 4.6% during the quarter; domestic traffic increased 5.1%, and international traffic increased 2.6%. Grupo Aeroportuario del Centro Nort(ADR) (NASDAQ:OMAB) also reported recently that April traffic jumped 5.9%; domestic traffic was up 7.7%, but international decreased 3.6%.

Valuation

The bottom line

None of these stocks is cheap nowadays, but they are not expensive either. All of them rallied during 2012 and recently reached two-year highs, although they have pulled back a little since.

There is no doubt that these businesses are solid, but Grupo Aeroportuario del Centro Nort(ADR) (NASDAQ:OMAB) is expected to have bigger growth than its peers, as reflected by market pricing over the past year. OMA’s stock price has doubled, while GAP’s and Grupo Aeroportuario del Sureste (ADR) (NYSE:ASR)’s have only increased by 50%.

The one thing that sets Grupo Aeroportuario del Centro Nort(ADR) (NASDAQ:OMAB) apart from the others is its non-airport business segments. Analysts see opportunities for commercial ventures in Monterrey and to expand the airport businesses in Mexico City. Thus, OMA has a separate revenue stream with further growth, which should help balance the airport business.

The article Opportunity in Mexico’s Airport Operators originally appeared on Fool.com and is written by Damian Illia.

Damian is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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