Head to Head Review: Air France-KLM (AFLYY) vs. Its Competitors

Air France-KLM (OTCMKTS:AFLYY) is one of 78 publicly-traded companies in the “Passenger Airlines” industry, but how does it contrast to its competitors? We will compare Air France-KLM to related businesses based on the strength of its profitability, analyst recommendations, earnings, risk, dividends, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent recommendations 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	6	3	0	2.33
Air France-KLM Competitors	1524	4060	6677	353	2.46

As a group, “Passenger Airlines” companies have a potential upside of 13.52%. Given Air France-KLM’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Air France-KLM has less favorable growth aspects than its competitors.

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	3.35%	44.05%	2.83%
Air France-KLM Competitors	-18.02%	5.63%	1.10%

Insider and Institutional Ownership

0.9% of Air France-KLM shares are owned by institutional investors. Comparatively, 43.3% of shares of all “Passenger Airlines” companies are owned by institutional investors. 10.9% of shares of all “Passenger Airlines” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Air France-KLM has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, Air France-KLM’s competitors have a beta of 18.43, suggesting that their average share price is 1,743% more volatile than the S&P 500.

Earnings and Valuation

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	$28.08 billion	$1.80 billion	2.49
Air France-KLM Competitors	$14.65 billion	$637.69 million	19.33

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

Summary

Air France-KLM competitors beat Air France-KLM on 8 of the 13 factors compared.

Air France-KLM Company Profile

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.