Alaska Air Group (NYSE:ALK) and Air France-KLM (OTCMKTS:AFLYY) are both mid-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.
Earnings & Valuation
This table compares Alaska Air Group and Air France-KLM's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Alaska Air Group | $8.78 billion | 0.95 | $769 million | $6.42 | 10.43 |
| Air France-KLM | $30.46 billion | 0.08 | $324.80 million | $1.06 | 5.51 |
Alaska Air Group has higher earnings, but lower revenue than Air France-KLM. Air France-KLM is trading at a lower price-to-earnings ratio than Alaska Air Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Alaska Air Group and Air France-KLM, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Alaska Air Group | 0 | 1 | 12 | 1 | 3.00 |
| Air France-KLM | 8 | 3 | 0 | 0 | 1.27 |
Alaska Air Group currently has a consensus target price of $67.7692, indicating a potential upside of 1.21%. Given Alaska Air Group's stronger consensus rating and higher probable upside, equities research analysts plainly believe Alaska Air Group is more favorable than Air France-KLM.
Profitability
This table compares Alaska Air Group and Air France-KLM's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Alaska Air Group | -13.96% | -19.39% | -5.51% |
| Air France-KLM | -38.76% | -678.23% | -16.49% |
Institutional & Insider Ownership
73.1% of Alaska Air Group shares are owned by institutional investors. Comparatively, 2.4% of Air France-KLM shares are owned by institutional investors. 0.5% of Alaska Air Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Alaska Air Group has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500. Comparatively, Air France-KLM has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500.
Summary
Alaska Air Group beats Air France-KLM on 13 of the 15 factors compared between the two stocks.
