Analyzing Alaska Air Group (NYSE:ALK) & Surf Air Mobility (NYSE:SRFM)

Surf Air Mobility (NYSE:SRFM) and Alaska Air Group (NYSE:ALK) are both transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surf Air Mobility	$119.43 million	0.85	-$74.91 million	($3.75)	-1.41
Alaska Air Group	$11.74 billion	0.56	$395.00 million	$2.75	19.31

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Surf Air Mobility	-50.23%	N/A	-52.00%
Alaska Air Group	2.86%	15.01%	3.47%

Analyst Recommendations

This is a summary of current recommendations and price targets for Surf Air Mobility and Alaska Air Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surf Air Mobility	0	1	2	0	2.67
Alaska Air Group	0	1	11	0	2.92

Surf Air Mobility currently has a consensus price target of $6.33, indicating a potential upside of 19.72%. Alaska Air Group has a consensus price target of $66.83, indicating a potential upside of 25.86%. Given Alaska Air Group’s stronger consensus rating and higher possible upside, analysts clearly believe Alaska Air Group is more favorable than Surf Air Mobility.

Insider & Institutional Ownership

17.7% of Surf Air Mobility shares are owned by institutional investors. Comparatively, 81.9% of Alaska Air Group shares are owned by institutional investors. 8.0% of Surf Air Mobility shares are owned by insiders. Comparatively, 1.0% of Alaska Air Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Surf Air Mobility has a beta of 2.89, suggesting that its share price is 189% more volatile than the S&P 500. Comparatively, Alaska Air Group has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.

Summary

Alaska Air Group beats Surf Air Mobility on 11 of the 14 factors compared between the two stocks.

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.

About Alaska Air Group

Alaska Air Group, Inc., through its subsidiaries, operates airlines. It operates through three segments: Mainline, Regional, and Horizon. The company offers scheduled air transportation services on Boeing jet aircraft for passengers and cargo in the United States, and in parts of Canada, Mexico, Costa Rica, Belize, Guatemala, and the Bahamas; and for passengers across a shorter distance network within the United States, Canada, and Mexico. Alaska Air Group, Inc. was founded in 1932 and is based in Seattle, Washington.