Azul (NYSE:AZUL – Get Free Report) and Air France-KLM (OTC:AFLYY – Get Free Report) are both transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.
Insider and Institutional Ownership
0.8% of Azul shares are held by institutional investors. Comparatively, 0.9% of Air France-KLM shares are held by institutional investors. 1.0% of Azul shares are held by insiders. 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.
Analyst Recommendations
This is a summary of recent ratings for Azul and Air France-KLM, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Azul | 0 | 8 | 1 | 0 | 2.11 |
| Air France-KLM | 0 | 1 | 0 | 0 | 2.00 |
Earnings and Valuation
This table compares Azul and Air France-KLM”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Azul | $19.53 billion | 0.01 | -$476.80 million | ($13.63) | -0.04 |
| Air France-KLM | $32.49 billion | 0.08 | $1.01 billion | $0.21 | 4.42 |
Air France-KLM has higher revenue and earnings than Azul. Azul 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.
Volatility and Risk
Azul has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500. Comparatively, Air France-KLM has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.
Profitability
This table compares Azul and Air France-KLM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Azul | -22.28% | N/A | -7.09% |
| Air France-KLM | 0.39% | 19.62% | 0.34% |
Summary
Air France-KLM beats Azul on 9 of the 14 factors compared between the two stocks.
About Azul
Azul S.A., together with its subsidiaries, provides air transportation services in Brazil and internationally. As of December 31, 2023, the company operated approximately 1,000 daily departures to 160 destinations through a network of 300 non-stop routes with an operating fleet of 183 aircraft and a passenger contractual fleet of 189 aircraft. It is involved in the cargo or mail, passenger charter, intellectual property owner, frequent-flyer program, airline operations, travel packages, funding, and aircraft financing activities; and provision of maintenance and hangarage services for aircraft, engines, parts and pieces. The company was incorporated in 2008 and is headquartered in Barueri, Brazil.
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.
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