SkyWest (NASDAQ:SKYW) and KLM Royal Dutch Airlines (OTCMKTS:KLMR) are both transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.
Earnings & Valuation
This table compares SkyWest and KLM Royal Dutch Airlines' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
SkyWest | $2.97 billion | 0.88 | $340.10 million | $6.25 | 8.36 |
KLM Royal Dutch Airlines | $12.40 billion | 0.06 | $501.76 million | N/A | N/A |
KLM Royal Dutch Airlines has higher revenue and earnings than SkyWest.
Institutional & Insider Ownership
87.5% of SkyWest shares are owned by institutional investors. 2.7% of SkyWest shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for SkyWest and KLM Royal Dutch Airlines, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
SkyWest | 0 | 0 | 3 | 1 | 3.25 |
KLM Royal Dutch Airlines | 0 | 0 | 0 | 0 | N/A |
SkyWest currently has a consensus price target of $60.00, indicating a potential upside of 14.83%. Given SkyWest's higher probable upside, research analysts clearly believe SkyWest is more favorable than KLM Royal Dutch Airlines.
Profitability
This table compares SkyWest and KLM Royal Dutch Airlines' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
SkyWest | 4.84% | 5.10% | 1.65% |
KLM Royal Dutch Airlines | N/A | N/A | N/A |
Volatility and Risk
SkyWest has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500. Comparatively, KLM Royal Dutch Airlines has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500.
Summary
SkyWest beats KLM Royal Dutch Airlines on 10 of the 12 factors compared between the two stocks.