Analyzing Surf Air Mobility (NYSE:SRFM) and Saker Aviation Services (OTCMKTS:SKAS)

Saker Aviation Services (OTCMKTS:SKAS) and Surf Air Mobility (NYSE:SRFM) are both small-cap transportation companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Valuation and Earnings

This table compares Saker Aviation Services and Surf Air Mobility”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Saker Aviation Services	$9.17 million	0.85	$1.25 million	$0.54	14.52
Surf Air Mobility	$119.43 million	1.41	-$74.91 million	($3.75)	-2.34

Saker Aviation Services has higher earnings, but lower revenue than Surf Air Mobility. Surf Air Mobility is trading at a lower price-to-earnings ratio than Saker Aviation Services, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for Saker Aviation Services and Surf Air Mobility, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saker Aviation Services	0	0	0	0	0.00
Surf Air Mobility	0	1	2	0	2.67

Surf Air Mobility has a consensus price target of $6.33, indicating a potential downside of 27.70%. Given Surf Air Mobility’s stronger consensus rating and higher probable upside, analysts clearly believe Surf Air Mobility is more favorable than Saker Aviation Services.

Profitability

This table compares Saker Aviation Services and Surf Air Mobility’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Saker Aviation Services	6.08%	17.60%	15.46%
Surf Air Mobility	-50.23%	N/A	-52.00%

Risk & Volatility

Saker Aviation Services has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, Surf Air Mobility has a beta of 2.89, meaning that its stock price is 189% more volatile than the S&P 500.

Institutional & Insider Ownership

37.3% of Saker Aviation Services shares are owned by institutional investors. Comparatively, 17.7% of Surf Air Mobility shares are owned by institutional investors. 34.6% of Saker Aviation Services shares are owned by insiders. Comparatively, 8.0% of Surf Air Mobility shares are owned by insiders. 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

Saker Aviation Services beats Surf Air Mobility on 8 of the 14 factors compared between the two stocks.

About Saker Aviation Services

Saker Aviation Services, Inc., through its subsidiaries, operates in the aviation services segment of the general aviation industry in the United States. It serves as the operator of a Downtown Manhattan (New York) Heliport. The company was formerly known as FirstFlight, Inc. and changed its name to Saker Aviation Services, Inc. in September 2009. Saker Aviation Services, Inc. is headquartered in New York, New York.

About Surf Air Mobility

Surf Air Mobility Inc. operates as an electric aviation and air travel company in the United States. The company offers an air mobility platform with scheduled routes and on demand charter flights operated by third parties. Surf Air Mobility Inc. is headquartered in Hawthorne, California.