Air France-KLM (OTC:AFLYY – Get Free Report) and Allegiant Travel (NASDAQ:ALGT – Get Free Report) are both transportation companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.
Profitability
This table compares Air France-KLM and Allegiant Travel’s 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% |
| Allegiant Travel | -9.56% | 3.33% | 0.90% |
Risk and Volatility
Air France-KLM has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500. Comparatively, Allegiant Travel has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Air France-KLM | 0 | 1 | 0 | 0 | 2.00 |
| Allegiant Travel | 1 | 9 | 0 | 1 | 2.09 |
Allegiant Travel has a consensus target price of $63.70, indicating a potential upside of 15.50%. Given Allegiant Travel’s stronger consensus rating and higher probable upside, analysts plainly believe Allegiant Travel is more favorable than Air France-KLM.
Insider and Institutional Ownership
0.9% of Air France-KLM shares are held by institutional investors. Comparatively, 85.8% of Allegiant Travel shares are held by institutional investors. 14.7% of Allegiant Travel shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Air France-KLM and Allegiant Travel”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Air France-KLM | $32.49 billion | 0.09 | $1.01 billion | $0.21 | 5.33 |
| Allegiant Travel | $2.56 billion | 0.39 | -$240.24 million | ($11.57) | -4.77 |
Air France-KLM has higher revenue and earnings than Allegiant Travel. Allegiant Travel is trading at a lower price-to-earnings ratio than Air France-KLM, indicating that it is currently the more affordable of the two stocks.
Summary
Allegiant Travel beats Air France-KLM on 8 of the 14 factors compared between the two stocks.
About Air France-KLM
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.
About Allegiant Travel
Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited-frequency, nonstop flights between under-served cities and leisure destinations. As of February 1, 2024, it operated a fleet of 126 Airbus A320 series aircraft. The company also provides air-related services and products in conjunction with air transportation, including baggage fees, advance seat assignments, travel protection products, priority boarding, a customer convenience fee, food and beverage purchases on board, and other air-related services, as well as use of its call center for purchases. In addition, it offers third party travel products, such as hotel rooms and ground transportation, such as rental cars and hotel shuttle products; and air transportation services through fixed fee agreements and charter service on a year-round and ad-hoc basis. Further, the company operates a golf course. Allegiant Travel Company was founded in 1997 and is based in Las Vegas, Nevada.
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