Air France-KLM (OTCMKTS:AFLYY) and LATAM Airlines Group (OTCMKTS:LTMAY) Critical Review

LATAM Airlines Group (OTCMKTS:LTMAY) and Air France-KLM (OTCMKTS:AFLYY) are both transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Insider and Institutional Ownership

0.9% of Air France-KLM shares are owned by institutional investors. 7.8% of LATAM Airlines Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

LATAM Airlines Group has a beta of 3.72, meaning that its stock price is 272% more volatile than the S&P 500. Comparatively, Air France-KLM has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500.

Profitability

This table compares LATAM Airlines Group and Air France-KLM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LATAM Airlines Group	5.00%	178.51%	4.15%
Air France-KLM	3.15%	-49.95%	2.88%

Analyst Recommendations

This is a breakdown of recent ratings for LATAM Airlines Group and Air France-KLM, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LATAM Airlines Group	0	0	0	0	N/A
Air France-KLM	1	1	1	0	2.00

Earnings and Valuation

This table compares LATAM Airlines Group and Air France-KLM’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LATAM Airlines Group	$11.64 billion	29.07	$581.83 million	N/A	N/A
Air France-KLM	$32.49 billion	0.02	$1.01 billion	$0.46	2.39

Air France-KLM has higher revenue and earnings than LATAM Airlines Group.

Summary

LATAM Airlines Group beats Air France-KLM on 6 of the 10 factors compared between the two stocks.

About LATAM Airlines Group

LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Chile, Peru, Ecuador, Colombia, Brazil, other Latin American countries, the Caribbean, North America, Europe, and Oceania. It offers other services, such as ground handling, courier, logistics, and maintenance services. As of December 31, 2023, the company provides passenger transport services to 148 destinations in 26 countries and cargo services to 166 destinations in 33 countries; and operated 333 fleet of aircraft. The company was formerly known as LAN Airlines S.A. and changed its name to LATAM Airlines Group S.A. in June 2012. LATAM Airlines Group S.A. was founded in 1929 and is headquartered in Santiago, Chile.

About Air France-KLM

Air France-KLM SA, together with its subsidiaries, provides passenger and cargo transportation services and aeronautical maintenance in Metropolitan France, Benelux, rest of Europe, and internationally. The company operates through three segments: Airframe maintenance, Engine Maintenance, and Component Support. It offers airframe maintenance, electronic, mechanical, pneumatic, hydraulic, and other services. The company was founded in 1919 and is headquartered in Paris, France.