Financial Contrast: Air France-KLM (OTC:AFLYY) vs. LATAM Airlines Group (OTCMKTS:LTMAQ)

Air France-KLM (OTC:AFLYY) and LATAM Airlines Group (OTCMKTS:LTMAQ) are both transportation companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Air France-KLM and LATAM Airlines Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air France-KLM	0	1	0	0	2.00
LATAM Airlines Group	0	0	0	0	0.00

Given LATAM Airlines Group’s higher probable upside, analysts clearly believe LATAM Airlines Group is more favorable than Air France-KLM.

Earnings and Valuation

This table compares Air France-KLM and LATAM Airlines Group”s top-line revenue, earnings per share 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	5.21
LATAM Airlines Group	$4.88 billion	0.00	-$4.65 billion	($7.17)	N/A

Air France-KLM has higher revenue and earnings than LATAM Airlines Group. LATAM Airlines Group 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.

Profitability

This table compares Air France-KLM and LATAM Airlines Group’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%
LATAM Airlines Group	-59.52%	N/A	-31.39%

Risk & Volatility

Air France-KLM has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, LATAM Airlines Group has a beta of 2.73, meaning that its share price is 173% more volatile than the S&P 500.

Institutional and Insider Ownership

0.9% of Air France-KLM shares are held by institutional investors. 7.8% of LATAM Airlines Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Air France-KLM beats LATAM Airlines Group on 9 of the 12 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 LATAM Airlines Group

LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services primarily in Chile, Peru, Ecuador, Colombia, Brazil, other Latin American countries, the Caribbean, North America, Europe, and Oceania. As of June 30, 2022, it provided passenger transport services to 133 destinations in 20 countries and cargo services to approximately 141 destinations in 23 countries, with an operating fleet of 300 aircraft and subleased one B767 cargo freighter to a third party. The company was formerly known as LAN Airlines S.A. and changed its name to LATAM Airlines Group S.A. in June 2012. LATAM Airlines Group S.A. was founded in 1929 and is headquartered in Santiago, Chile. On May 26, 2020, LATAM Airlines Group S.A., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.