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

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

Profitability

This table compares LATAM Airlines Group and Air France-KLM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LATAM Airlines Group	5.93%	169.16%	5.01%
Air France-KLM	0.39%	19.62%	0.34%

Analyst Recommendations

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

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

Valuation and Earnings

This table compares LATAM Airlines Group and Air France-KLM”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LATAM Airlines Group	$11.64 billion	5,043.36	$581.83 million	N/A	N/A
Air France-KLM	$32.49 billion	0.08	$1.01 billion	$0.21	4.52

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

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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

LATAM Airlines Group has a beta of 3.75, suggesting that its stock price is 275% more volatile than the S&P 500. Comparatively, Air France-KLM has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500.

Summary

LATAM Airlines Group beats Air France-KLM on 6 of the 10 factors compared between the two stocks.

About LATAM Airlines Group

LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Chile, Peru, Ecuador, Colombia, Brazil, other Latin American countries, the Caribbean, North America, Europe, and Oceania. It offers other services, such as ground handling, courier, logistics, and maintenance services. As of December 31, 2023, the company provides passenger transport services to 148 destinations in 26 countries and cargo services to 166 destinations in 33 countries; and operated 333 fleet of aircraft. 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.

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.