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

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

Profitability

This table compares Air France-KLM and easyJet’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%
easyJet	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations for Air France-KLM and easyJet, as provided by MarketBeat.com.

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

Valuation and Earnings

This table compares Air France-KLM and easyJet”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Air France-KLM	$32.49 billion	0.08	$1.01 billion	$0.11	8.86
easyJet	$11.80 billion	0.39	$573.23 million	N/A	N/A

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

Risk and Volatility

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

Institutional & Insider Ownership

0.9% of Air France-KLM shares are owned by institutional investors. 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.

Summary

Air France-KLM beats easyJet on 7 of the 9 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 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.