Japan Airlines (OTCMKTS:JAPSY – Get Free Report) and Air France-KLM (OTCMKTS:AFLYY – Get Free Report) are both mid-cap transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Institutional and Insider Ownership
0.9% of Air France-KLM shares are held by institutional investors. 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.
Risk & Volatility
Japan Airlines has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Air France-KLM has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Japan Airlines | 1 | 0 | 0 | 1 | 2.50 |
| Air France-KLM | 0 | 5 | 1 | 1 | 2.43 |
Valuation & Earnings
This table compares Japan Airlines and Air France-KLM”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Japan Airlines | $12.11 billion | 0.68 | $706.45 million | $0.95 | 9.88 |
| Air France-KLM | $34.05 billion | 0.10 | $343.03 million | $0.40 | 3.36 |
Japan Airlines has higher earnings, but lower revenue than Air France-KLM. Air France-KLM is trading at a lower price-to-earnings ratio than Japan Airlines, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Japan Airlines and Air France-KLM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Japan Airlines | 6.48% | 11.17% | 4.29% |
| Air France-KLM | 3.21% | 82.86% | 2.79% |
Summary
Japan Airlines beats Air France-KLM on 7 of the 12 factors compared between the two stocks.
About Japan Airlines
Japan Airlines Co., Ltd., together with its subsidiaries, provides scheduled and non-scheduled air transport services in Japan, Asia, Oceania, North America, and Europe. The company operates through Air Transportation and Other segments. It offers passenger, ground handling, cargo and mail handling, and maintenance services. The company is also involved in the aerial work and other related business; airport peripheral business; and sale of travel package tours. As of March 31, 2023, it operated a fleet of 224 aircraft. The company was formerly known as Japan Airlines International Co., Ltd. and changed its name to Japan Airlines Co., Ltd. in April 2011. The company was founded in 1951 and is headquartered in Tokyo, Japan.
About Air France-KLM
Air France-KLM SA, together with its subsidiaries, provides passenger and cargo transportation services and aeronautical maintenance in Metropolitan France, Benelux, rest of Europe, and internationally. The company operates through three segments: Airframe maintenance, Engine Maintenance, and Component Support. It offers airframe maintenance, electronic, mechanical, pneumatic, hydraulic, and other services. The company was founded in 1919 and is headquartered in Paris, France.
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