Nigerian Aviation Dealing with Firm Plc (NAHCO) and Skyway Aviation Dealing with Firm Plc (SKYAVN) are each listed on the NGX within the providers sector and transport-related subsector.
As of September 9, 2025, NAHCO’s share value has gained 128% year-to-date, whereas SKYAVN gained 169% YtD, each far outpacing the NGX All-Share Index’s 35.82% YtD achieve.
However in 2024, NAHCO led with a formidable 88% YtD return, whereas SKYAVN delivered a 32% return over the identical interval.
In pure percentage-return phrases, SKYAVN has outperformed NAHCO in 2025 thus far. A N1 million funding in SKYAVN would now be price N2.69 million, versus N2.28 million for a similar funding in NAHCO.
That stated, outperforming doesn’t essentially imply higher worth.
A better take a look at the basics, similar to earnings progress, steadiness sheet energy, dividends, valuation multiples, debt profile, and general dangers, is required to find out which inventory is the stronger funding going ahead.
Income and Profitability
Each corporations are doing nicely, however in numerous methods:
- NAHCO stays the larger participant, producing about N32 billion in income in H1 2025 and delivering N8.9 billion in revenue. That interprets to a 27.5% revenue margin, which means for each N1 earned, about 28 kobo is retained as revenue.
- Skyway, although smaller with N21 billion in income, posted N8.13 billion in revenue, reaching a a lot greater 39% revenue margin.
This implies Skyway is extra environment friendly in changing income into revenue.
Stability sheet energy
When positioned aspect by aspect, Skyway comes throughout as the larger participant.
- Its steadiness sheet stands at N53 billion, reflecting 27% progress within the first half of the yr. This growth was largely pushed by a rise in property, plant, and gear (PPE) and commerce receivables, indicating each ongoing funding in operational capability and better credit score publicity to prospects.
- Against this, NAHCO’s steadiness sheet measurement is about N44 billion, down 6% over the identical interval. The decline stemmed from reductions in each PPE and commerce receivables, which can sign decrease capital spending and tighter customer balances, but in addition a possible slowdown in progress momentum.
Monetary well being
Trying deeper into leverage, the 2 corporations differ sharply:
- Skyway: As of June 2025, debt stood at N4.4 billion, up 60% in six months. This pushed its fairness a number of to 1.46, displaying reasonable use of leverage. Whereas borrowings have elevated, Skyway nonetheless maintains a conservative capital construction.
- NAHCO: Debt was about N6.23 billion, with an fairness a number of of two.54. This means a a lot greater reliance on debt. Whereas leverage can amplify returns, it additionally raises threat publicity.
Investor takeaway:
Skyway seems to be balancing progress with reasonable leverage, giving it extra flexibility to fund growth with out overstretching its steadiness sheet.
NAHCO’s greater gearing suggests it’s working with much less headroom, which may weigh on revenue if curiosity prices rise.
Market valuation
NAHCO seems to be just like the heavyweight.
- Its market capitalization stands at about N205 billion, comfortably above its N44 billion in complete belongings and N17 billion in web belongings.
- This exhibits that traders are already pricing NAHCO at a big premium to e book worth.
Skyway, however, trades at a lesser premium.
- Its market capitalization is about N122 billion, in comparison with N53 billion in complete belongings and N36 billion in web belongings.
- This implies a extra modest premium, which means traders will not be stretching valuations as a lot as they’re with NAHCO, probably signaling room for rerating if Skyway continues to ship robust margins and progress.
On income multiples, NAHCO seems to be cheaper. It trades at a price-to-sales (P/S) ratio of two.93, which means traders pay N2.93 for each N1 of income generated.
Skyway, in contrast, trades at a P/S ratio of three.21, so traders are paying N3.21 for each N1 of income.
Earnings inform an analogous story:
- Skyway: P/E ratio of 12.75x, which means traders pay N12.75 for each N1 of earnings.
- NAHCO: P/E ratio of 11x, implying a less expensive valuation on earnings.
At present revenue ranges, it will take about 11 years for traders in NAHCO to recoup their funding, in comparison with virtually 13 years for Skyway.
Nevertheless, traders don’t simply pay for as we speak’s earnings; they’re betting on future progress, which may shorten the payback interval.
- Over the previous 5 years, NAHCO has compounded revenue at a rare 112% yearly, far outpacing Skyway’s 59% CAGR.
- But, in H1 2025, Skyway’s revenue is already virtually double its full-year 2024 revenue, signaling explosive near-term momentum.
- NAHCO, in the meantime, achieved about 69% of its 2024 full-year revenue in H1 2025, robust, however extra measured in comparison with Skyway’s surge.
Importantly, in absolute phrases, NAHCO’s revenue is barely greater than Skyway’s.
Investor takeaway:
- On valuation multiples (P/S and P/E), NAHCO seems to be cheaper.
- On progress trajectory, Skyway is accelerating quicker in 2025, which may justify its greater premium if sustained.
Perspective
- For long-term traders: NAHCO is the safer Purchase, given its monitor file and cheaper multiples.
- For growth-seeking or speculative traders: Skyway is a Purchase, with potential for vital upside if earnings acceleration sustains.
In essence, it’s a selection between stability (NAHCO) and momentum (Skyway); each are Buys, however which one you select will depend on your threat urge for food.
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