Critical Survey: Air France-KLM (AFLYY) & Its Rivals

Air France-KLM (OTC:AFLYY) is one of 36 publicly-traded companies in the “Air transportation, scheduled” industry, but how does it contrast to its rivals? We will compare Air France-KLM to similar businesses based on the strength of its profitability, risk, valuation, analyst recommendations, dividends, institutional ownership and earnings.

Insider & Institutional Ownership

0.9% of Air France-KLM shares are owned by institutional investors. Comparatively, 54.7% of shares of all “Air transportation, scheduled” companies are owned by institutional investors. 4.4% of shares of all “Air transportation, scheduled” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Air France-KLM and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Air France-KLM	$32.49 billion	$1.01 billion	8.65
Air France-KLM Competitors	$15.14 billion	$319.52 million	-2.43

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Air France-KLM and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air France-KLM	0	1	0	0	2.00
Air France-KLM Competitors	865	2454	3525	208	2.44

As a group, “Air transportation, scheduled” companies have a potential upside of 28.07%. Given Air France-KLM’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Air France-KLM has less favorable growth aspects than its rivals.

Risk & Volatility

Air France-KLM has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Air France-KLM’s rivals have a beta of 2.47, indicating that their average share price is 147% more volatile than the S&P 500.

Profitability

This table compares Air France-KLM and its rivals’ 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%
Air France-KLM Competitors	1.98%	-27.06%	2.79%

Summary

Air France-KLM rivals beat Air France-KLM on 9 of the 13 factors compared.

Air France-KLM Company Profile

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.