Analyzing Surf Air Mobility (NYSE:SRFM) and JetBlue Airways (NASDAQ:JBLU)

JetBlue Airways (NASDAQ:JBLU) and Surf Air Mobility (NYSE:SRFM) are both small-cap transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings for JetBlue Airways and Surf Air Mobility, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JetBlue Airways	4	8	0	0	1.67
Surf Air Mobility	0	1	2	0	2.67

JetBlue Airways presently has a consensus target price of $5.16, suggesting a potential upside of 17.52%. Surf Air Mobility has a consensus target price of $6.33, suggesting a potential downside of 27.70%. Given JetBlue Airways’ higher possible upside, analysts clearly believe JetBlue Airways is more favorable than Surf Air Mobility.

Valuation & Earnings

This table compares JetBlue Airways and Surf Air Mobility”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JetBlue Airways	$9.28 billion	0.17	-$795.00 million	($0.82)	-5.35
Surf Air Mobility	$119.43 million	1.41	-$74.91 million	($3.75)	-2.34

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

Profitability

This table compares JetBlue Airways and Surf Air Mobility’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JetBlue Airways	-3.12%	-11.93%	-1.93%
Surf Air Mobility	-50.23%	N/A	-52.00%

Risk & Volatility

JetBlue Airways has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, Surf Air Mobility has a beta of 2.89, suggesting that its share price is 189% more volatile than the S&P 500.

Insider & Institutional Ownership

83.7% of JetBlue Airways shares are owned by institutional investors. Comparatively, 17.7% of Surf Air Mobility shares are owned by institutional investors. 1.2% of JetBlue Airways shares are owned by insiders. Comparatively, 8.0% of Surf Air Mobility shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Surf Air Mobility beats JetBlue Airways on 8 of the 14 factors compared between the two stocks.

About JetBlue Airways

JetBlue Airways Corporation provides air transportation services. The company operates a fleet of Airbus A321, Airbus A220, Airbus A321neo, Airbus A320 Restyled, Airbus A320, Airbus A321 with Mint, Airbus A321neo with Mint, Airbus A321neoLR with Mint, and Embraer E190 aircraft. It also serves 100 destinations across the United States, the Caribbean and Latin America, Canada, and Europe. The company was incorporated in 1998 and is based in Long Island City, 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.