Joby Aviation (NYSE:JOBY – Get Free Report) and American Airlines Group (NASDAQ:AAL – Get Free Report) are both transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Insider and Institutional Ownership
52.9% of Joby Aviation shares are owned by institutional investors. Comparatively, 52.4% of American Airlines Group shares are owned by institutional investors. 28.5% of Joby Aviation shares are owned by company insiders. Comparatively, 0.6% of American Airlines Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Joby Aviation and American Airlines Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Joby Aviation | $140,000.00 | 93,771.74 | -$608.03 million | ($1.07) | -15.50 |
| American Airlines Group | $54.25 billion | 0.16 | $846.00 million | $0.80 | 16.46 |
American Airlines Group has higher revenue and earnings than Joby Aviation. Joby Aviation is trading at a lower price-to-earnings ratio than American Airlines Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations for Joby Aviation and American Airlines Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Joby Aviation | 1 | 4 | 1 | 0 | 2.00 |
| American Airlines Group | 1 | 7 | 9 | 2 | 2.63 |
Joby Aviation currently has a consensus target price of $10.50, indicating a potential downside of 36.67%. American Airlines Group has a consensus target price of $16.7647, indicating a potential upside of 27.29%. Given American Airlines Group’s stronger consensus rating and higher possible upside, analysts clearly believe American Airlines Group is more favorable than Joby Aviation.
Profitability
This table compares Joby Aviation and American Airlines Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Joby Aviation | -447,083.78% | -71.29% | -54.53% |
| American Airlines Group | 1.05% | -24.55% | 1.68% |
Risk and Volatility
Joby Aviation has a beta of 2.52, indicating that its stock price is 152% more volatile than the S&P 500. Comparatively, American Airlines Group has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.
Summary
American Airlines Group beats Joby Aviation on 11 of the 15 factors compared between the two stocks.
About Joby Aviation
Joby Aviation, Inc., a vertically integrated air mobility company, engages in building an electric vertical takeoff and landing aircraft optimized to deliver air transportation as a service. The company intends to build an aerial ridesharing service, as well as developing an application-based platform that will enable consumers to book rides. Joby Aviation, Inc. was founded in 2009 and is headquartered in Santa Cruz, California.
About American Airlines Group
American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. The company provides scheduled air transportation services for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C., as well as through partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo. It operates a mainline fleet of 965 aircraft. The company was formerly known as AMR Corporation and changed its name to American Airlines Group Inc. in December 2013. American Airlines Group Inc. was founded in 1926 and is headquartered in Fort Worth, Texas.
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