Alaska Air Group (NYSE:ALK) vs. Air France-KLM (OTC:AFLYY) Critical Analysis

Air France-KLM (OTC:AFLYY) and Alaska Air Group (NYSE:ALK) are both mid-cap transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Risk & Volatility

Air France-KLM has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Alaska Air Group has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.

Earnings and Valuation

This table compares Air France-KLM and Alaska Air Group”s gross 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	0.07	$1.01 billion	$0.10	8.54
Alaska Air Group	$11.74 billion	0.79	$395.00 million	$3.05	24.71

Air France-KLM has higher revenue and earnings than Alaska Air Group. Air France-KLM is trading at a lower price-to-earnings ratio than Alaska Air Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Air France-KLM and Alaska Air Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air France-KLM	0	1	0	0	2.00
Alaska Air Group	0	0	13	0	3.00

Alaska Air Group has a consensus price target of $76.69, suggesting a potential upside of 1.78%. Given Alaska Air Group’s stronger consensus rating and higher possible upside, analysts plainly believe Alaska Air Group is more favorable than Air France-KLM.

Insider and Institutional Ownership

0.9% of Air France-KLM shares are held by institutional investors. Comparatively, 81.9% of Alaska Air Group shares are held by institutional investors. 0.7% of Alaska Air Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Air France-KLM and Alaska Air 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%
Alaska Air Group	3.37%	14.66%	3.60%

Summary

Alaska Air Group beats Air France-KLM on 10 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 Alaska Air Group

Alaska Air Group, Inc., through its subsidiaries, operates airlines. It operates through three segments: Mainline, Regional, and Horizon. The company offers scheduled air transportation services on Boeing jet aircraft for passengers and cargo in the United States, and in parts of Canada, Mexico, Costa Rica, Belize, Guatemala, and the Bahamas; and for passengers across a shorter distance network within the United States, Canada, and Mexico. Alaska Air Group, Inc. was founded in 1932 and is based in Seattle, Washington.