Deutsche Lufthansa (OTCMKTS:DLAKY) & Air France-KLM (OTC:AFLYY) Critical Survey

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

Volatility and Risk

Deutsche Lufthansa has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Air France-KLM has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500.

Valuation & Earnings

This table compares Deutsche Lufthansa and Air France-KLM”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Lufthansa	$38.36 billion	0.26	$1.81 billion	$1.26	6.49
Air France-KLM	$32.49 billion	0.08	$1.01 billion	$0.11	9.55

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

Institutional & Insider Ownership

0.9% of Air France-KLM shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Deutsche Lufthansa and Air France-KLM, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Lufthansa	1	3	0	2	2.50
Air France-KLM	0	1	0	0	2.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Deutsche Lufthansa	2.46%	11.33%	2.41%
Air France-KLM	0.39%	19.62%	0.34%

Summary

Deutsche Lufthansa beats Air France-KLM on 8 of the 12 factors compared between the two stocks.

About Deutsche Lufthansa

Deutsche Lufthansa AG operates as an aviation company worldwide. It operates in three segments: Passenger Airlines; Logistics; and Maintenance, Repair and Overhaul Services (MRO). The Passenger Airlines segment offers products and services to passengers of Lufthansa Airlines, SWISS, Austrian Airlines, Brussels Airlines, and Eurowings. Its Logistics segment offers airfreight container management, urgent shipments, and customs clearance services; and e-commerce solutions. The MRO segment provides maintenance, repair, and overhaul services for civil commercial aircraft serving original equipment manufacturers, aircraft leasing companies, operators of VIP jets, government, armed forces, and airlines. The company also offers corporate payment and billing services; vocational and professional training for cockpit and cabin crew; and IT solutions. As of December 31, 2023, it had a fleet of 721 aircraft. Deutsche Lufthansa AG was founded in 1926 and is headquartered in Cologne, Germany.

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.