Air Canada (OTCMKTS:ACDVF – Get Free Report) and Air France-KLM (OTC:AFLYY – Get Free Report) are both mid-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.
Analyst Recommendations
This is a summary of current ratings for Air Canada and Air France-KLM, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Air Canada | 0 | 0 | 0 | 1 | 4.00 |
| Air France-KLM | 0 | 1 | 0 | 0 | 2.00 |
Institutional & Insider Ownership
Risk & Volatility
Air Canada has a beta of 2.09, suggesting that its stock price is 109% 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.
Profitability
This table compares Air Canada and Air France-KLM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Air Canada | 7.82% | 80.37% | 4.35% |
| Air France-KLM | 0.39% | 19.62% | 0.34% |
Valuation & Earnings
This table compares Air Canada 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 | |
| Air Canada | $16.24 billion | 0.23 | $1.26 billion | $3.25 | 3.51 |
| Air France-KLM | $32.49 billion | 0.10 | $1.01 billion | $0.11 | 11.05 |
Air Canada has higher earnings, but lower revenue than Air France-KLM. Air Canada 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.
Summary
Air Canada beats Air France-KLM on 9 of the 12 factors compared between the two stocks.
About Air Canada
Air Canada provides domestic, U.S. transborder, and international airline services. The company provides scheduled passenger services under the Air Canada Vacations and Air Canada Rouge brand names in the Canadian market, the Canada-U.S. transborder market, and in the international market to and from Canada, as well as through capacity purchase agreements on other regional carriers. As of December 31, 2023, it operated a fleet of 203 aircraft under the Air Canada brand name comprising 115 Airbus narrow-body aircraft, and 88 Airbus wide-body aircraft; 118 aircraft under the Air Canada Express brand name, including 25 Embraer 175, 15 Mitsubishi CRJ-200, 35 Mitsubishi CRJ-900, and 43 De Havilland Dash 8-400aircraft; and 40 aircraft under the Air Canada Rouge brand name consisting of 17 Airbus A321 aircraft, 5 Airbus A320 aircraft, and 18 Airbus A319 aircraft. The company provides air cargo services in approximately 50 countries, including Toronto, Halifax, St. John's, Miami, Atlanta, Dallas, Quito, Lima, San Juan, Mexico City, Guadalajara, Bogotá, Madrid, Frankfurt, Basel, and Liege. In addition, it develops, operates, markets, and distributes vacation travel packages in the Caribbean, Mexico, the United States, Europe, Central and South America, South Pacific, Australia, and Asia; offers cruise packages in North America, Europe, and the Caribbean; and provides travel loyalty programs. Air Canada was founded in 1937 and is headquartered in Saint-Laurent, Canada.
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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