Analyzing Air France-KLM (OTC:AFLYY) & easyJet (OTCMKTS:EJTTF)

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

Insider & Institutional Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
easyJet	N/A	N/A	N/A
Air France-KLM	0.39%	19.62%	0.34%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
easyJet	0	0	0	0	0.00
Air France-KLM	0	1	0	0	2.00

Valuation and Earnings

This table compares easyJet 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
easyJet	$11.80 billion	0.39	$573.23 million	N/A	N/A
Air France-KLM	$32.49 billion	0.08	$1.01 billion	$0.11	8.86

Air France-KLM has higher revenue and earnings than easyJet.

Volatility & Risk

easyJet has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500. Comparatively, Air France-KLM has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500.

Summary

Air France-KLM beats easyJet on 7 of the 9 factors compared between the two stocks.

About easyJet

easyJet plc operates as a low-cost airline carrier in Europe. The company engages in the provision of holiday packages; aircraft trading and leasing activities; development of building projects; financing and insurance business; and tour operator activities. easyJet plc was founded in 1995 and is headquartered in Luton, the United Kingdom.

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.