Joby Aviation (NYSE:JOBY) and Frontier Group (NASDAQ:ULCC) Financial Contrast

Joby Aviation (NYSE:JOBY) and Frontier Group (NASDAQ:ULCC) are both transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Profitability

This table compares Joby Aviation and Frontier Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Joby Aviation	N/A	-71.29%	-54.53%
Frontier Group	-0.87%	-12.56%	-1.12%

Risk & Volatility

Joby Aviation has a beta of 2.52, meaning that its stock price is 152% more volatile than the S&P 500. Comparatively, Frontier Group has a beta of 2.57, meaning that its stock price is 157% more volatile than the S&P 500.

Institutional & Insider Ownership

52.9% of Joby Aviation shares are owned by institutional investors. 32.4% of Joby Aviation shares are owned by company insiders. Comparatively, 48.0% of Frontier Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Joby Aviation and Frontier Group”s top-line 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	90,030.75	-$608.03 million	($1.07)	-13.76
Frontier Group	$3.78 billion	0.22	$85.00 million	($0.16)	-22.50

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Joby Aviation and Frontier Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Joby Aviation	3	4	1	0	1.75
Frontier Group	1	7	2	0	2.10

Joby Aviation presently has a consensus price target of $12.00, suggesting a potential downside of 18.51%. Frontier Group has a consensus price target of $6.13, suggesting a potential upside of 70.14%. Given Frontier Group’s stronger consensus rating and higher probable upside, analysts clearly believe Frontier Group is more favorable than Joby Aviation.

Summary

Frontier Group beats Joby Aviation on 10 of the 14 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 Frontier Group

Frontier Group Holdings, Inc., provides low-fare passenger airline services to leisure travelers in the United States and Latin America. The company sells its products through direct distribution channels, including its website, mobile app, and contact centers. As of December 31, 2023, it had a fleet of 136 Airbus single-aisle aircrafts. Frontier Group Holdings, Inc. was founded in 1994 and is headquartered in Denver, Colorado.