Wednesday, September 23, 2020

Grupo Aeroportuario Del Pacifico Offers Investors A Middle Path

Among the Mexican airport operators, investors have an interesting set of choices. Grupo Aeroportuario del Sureste SAB (ASR) (“ASUR”) is seen as the most exposed to tourist traffic, generates robust non-aero revenue, and has the most international diversification. Grupo Aeroportuario del Centro Norte (OMAB) (“OMAB”) is a purely domestic player with no diversification outside Mexico and a much higher reliance on business and personal travel. Grupo Aeroportuario del Pacifico (PAC) (“GAP”), though, takes a middle ground, with some international exposure and a much more balanced mix between domestic/international travel and tourism/business/personal.

There’s an interesting range of valuations on offer today, too, though the spread is not really all that wide. I believe any of these airport operators can be expected to generate a solid long-term return, with OMAB on the high end right now. Given its more balanced business mix, I can see an argument for owning GAP as a somewhat less risky call on internal economic improvement in Mexico.

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Grupo Aeroportuario Del Pacifico Offers Investors A Middle Path

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