Contrasting Sun Country Airlines (NASDAQ:SNCY) & Air France-KLM (OTC:AFLYY)

Sun Country Airlines (NASDAQ:SNCY) and Air France-KLM (OTC:AFLYY) are both transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Analyst Recommendations

This is a summary of recent ratings for Sun Country Airlines and Air France-KLM, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sun Country Airlines	0	2	5	0	2.71
Air France-KLM	0	1	0	0	2.00

Sun Country Airlines presently has a consensus target price of $19.29, suggesting a potential upside of 43.71%. Given Sun Country Airlines’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Sun Country Airlines is more favorable than Air France-KLM.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sun Country Airlines	4.92%	10.23%	3.49%
Air France-KLM	0.39%	19.62%	0.34%

Institutional and Insider Ownership

0.9% of Air France-KLM shares are owned by institutional investors. 4.6% of Sun Country Airlines shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Sun Country 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
Sun Country Airlines	$1.08 billion	0.66	$52.90 million	$0.95	14.13
Air France-KLM	$32.49 billion	0.09	$1.01 billion	$0.11	10.64

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

Volatility and Risk

Sun Country Airlines has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Air France-KLM has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.

Summary

Sun Country Airlines beats Air France-KLM on 9 of the 14 factors compared between the two stocks.

About Sun Country Airlines

Sun Country Airlines Holdings, Inc., an air carrier company, operates scheduled passenger, air cargo, charter air transportation, and related services in the United States, Latin America, and internationally. It operates through two segments, Passenger and Cargo. The company also provides crew, maintenance, and insurance services through ad hoc, repeat, short-term, and long-term service contracts; and loyalty program rewards. As of December 31, 2023, its fleet consisted of 60 Boeing 737-NG aircraft, which includes 42 passenger fleet, 12 cargo, and 6 leased to unaffiliated airlines aircraft. The company serves leisure, and visiting friends and relatives passengers; charter and cargo customers; military branches; collegiate and professional sports teams; wholesale tour operators; schools; companies; and other individual entities through its website, call center, and travel agents. Sun Country Airlines Holdings, Inc. was founded in 1983 and is headquartered in Minneapolis, Minnesota.

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.