Analyzing Air France-KLM (OTCMKTS:AFLYY) and ANA (OTCMKTS:ALNPY)

Air France-KLM (OTCMKTS:AFLYY) and ANA (OTCMKTS:ALNPY) are both mid-cap transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Risk and Volatility

Air France-KLM has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, ANA has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Earnings & Valuation

This table compares Air France-KLM and ANA”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	$34.05 billion	0.09	$343.03 million	$0.40	3.05
ANA	$14.85 billion	0.59	$1.01 billion	$0.39	9.51

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

Insider and Institutional Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Air France-KLM	3.21%	82.86%	2.79%
ANA	6.30%	12.88%	4.05%

Analyst Recommendations

This is a breakdown of current recommendations for Air France-KLM and ANA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air France-KLM	0	5	1	1	2.43
ANA	0	0	0	0	0.00

Summary

Air France-KLM beats ANA on 8 of the 13 factors compared between the two stocks.

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.

About ANA

ANA Holdings Inc., together with its subsidiaries, provides air transportation services in Japan and internationally. It operates through Air Transportation, Aviation-Related Business, Travel Business, and Trading Business segments. The Air Transportation segment offers regular and irregular air transport of passengers, cargo, etc. on domestic and international routes. The Aviation-Related Business segment provides services incidental to air transportation, such as airport handling and maintenance. The Travel Business develops and sells travel products, as well as plans and sells package travel products. The Trading Business imports and exports aviation-related materials, as well as sells through stores and mail-order channels. The company was formerly known as All Nippon Airways Co., Ltd. and changed its name to ANA Holdings Inc. in April 2013. ANA Holdings Inc. was incorporated in 1920 and is headquartered in Minato, Japan.