Contrasting Air France-KLM (AFLYY) and Its Competitors

Air France-KLM (OTC:AFLYY) is one of 36 public companies in the “Air transportation, scheduled” industry, but how does it contrast to its competitors? We will compare Air France-KLM to related businesses based on the strength of its institutional ownership, dividends, valuation, earnings, profitability, analyst recommendations and risk.

Risk and Volatility

Air France-KLM has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, Air France-KLM’s competitors have a beta of 2.47, suggesting that their average share price is 147% more volatile than the S&P 500.

Profitability

This table compares Air France-KLM and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Air France-KLM	0.39%	19.62%	0.34%
Air France-KLM Competitors	1.98%	-27.06%	2.79%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Air France-KLM and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air France-KLM	0	1	0	0	2.00
Air France-KLM Competitors	863	2453	3525	207	2.44

As a group, “Air transportation, scheduled” companies have a potential upside of 27.22%. Given Air France-KLM’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Air France-KLM has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Air France-KLM and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Air France-KLM	$32.49 billion	$1.01 billion	8.73
Air France-KLM Competitors	$15.12 billion	$319.52 million	-1.92

Air France-KLM has higher revenue and earnings than its competitors. Air France-KLM is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

0.9% of Air France-KLM shares are held by institutional investors. Comparatively, 54.7% of shares of all “Air transportation, scheduled” companies are held by institutional investors. 4.4% of shares of all “Air transportation, scheduled” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Air France-KLM competitors beat Air France-KLM on 9 of the 13 factors compared.

Air France-KLM Company Profile

AIR FRANCE-KLM is an airline company. The Company’s core business is passenger transport, cargo transport, and aircraft maintenance services. The Group is the world leader in terms of international passenger traffic; and its cargo activity (not including integrators) and is one of the world’s major maintenance service providers. The Group structure is simple: a holding company with two airline subsidiaries. Air France-KLM has established a set of clearly defined commitments to ensure that its strategy of profitable growth goes hand in hand with environmental quality and social progress.