Surf Air Mobility (NYSE:SRFM) and Delta Air Lines (NYSE:DAL) Critical Comparison

Surf Air Mobility (NYSE:SRFM) and Delta Air Lines (NYSE:DAL) are both transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Valuation and Earnings

This table compares Surf Air Mobility and Delta Air Lines”s gross 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	1.61	-$74.91 million	($2.78)	-1.62
Delta Air Lines	$61.64 billion	0.65	$3.46 billion	$6.90	8.88

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Surf Air Mobility and Delta Air Lines, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surf Air Mobility	0	1	2	0	2.67
Delta Air Lines	0	2	15	2	3.00

Surf Air Mobility currently has a consensus price target of $6.58, indicating a potential upside of 46.39%. Delta Air Lines has a consensus price target of $66.21, indicating a potential upside of 8.09%. Given Surf Air Mobility’s higher possible upside, equities research analysts clearly believe Surf Air Mobility is more favorable than Delta Air Lines.

Institutional and Insider Ownership

17.7% of Surf Air Mobility shares are owned by institutional investors. Comparatively, 69.9% of Delta Air Lines shares are owned by institutional investors. 8.0% of Surf Air Mobility shares are owned by company insiders. Comparatively, 0.9% of Delta Air Lines shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Surf Air Mobility and Delta Air Lines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Surf Air Mobility	-53.48%	N/A	-46.15%
Delta Air Lines	7.24%	24.86%	5.01%

Risk and Volatility

Surf Air Mobility has a beta of 2.92, suggesting that its share price is 192% more volatile than the S&P 500. Comparatively, Delta Air Lines has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.

Summary

Delta Air Lines beats Surf Air Mobility on 11 of the 15 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 Delta Air Lines

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, Bogota, Lima, Mexico City, London-Heathrow, Paris-Charles de Gaulle, Sao Paulo, Seoul-Incheon, and Tokyo. The company sells its tickets through various distribution channels, including delta.com and the Fly Delta app; acts as a reservations specialists; and operates online travel and traditional brick and mortar agencies. It also provides aircraft maintenance and engineering support, repair, and overhaul services; and vacation packages to third-party consumers. The company operates through a fleet of approximately 1,273 aircrafts. Delta Air Lines, Inc. was founded in 1924 and is based in Atlanta, Georgia.