Head-To-Head Survey: Surf Air Mobility (NYSE:SRFM) vs. Allegiant Travel (NASDAQ:ALGT)

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

Insider & Institutional Ownership

85.8% of Allegiant Travel shares are held by institutional investors. Comparatively, 17.7% of Surf Air Mobility shares are held by institutional investors. 14.7% of Allegiant Travel shares are held by insiders. Comparatively, 8.0% of Surf Air Mobility shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Allegiant Travel has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500. Comparatively, Surf Air Mobility has a beta of 3.03, suggesting that its share price is 203% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Allegiant Travel and Surf Air Mobility, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegiant Travel	1	8	4	0	2.23
Surf Air Mobility	1	1	2	0	2.25

Allegiant Travel presently has a consensus price target of $92.73, indicating a potential downside of 7.14%. Surf Air Mobility has a consensus price target of $6.50, indicating a potential upside of 208.06%. Given Surf Air Mobility’s stronger consensus rating and higher probable upside, analysts plainly believe Surf Air Mobility is more favorable than Allegiant Travel.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allegiant Travel	-11.36%	5.24%	1.26%
Surf Air Mobility	-66.95%	N/A	-58.16%

Earnings and Valuation

This table compares Allegiant Travel and Surf Air Mobility”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allegiant Travel	$2.51 billion	0.73	-$240.24 million	($16.30)	-6.13
Surf Air Mobility	$119.43 million	1.11	-$74.91 million	($2.48)	-0.85

Surf Air Mobility has lower revenue, but higher earnings than Allegiant Travel. Allegiant Travel 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.

About Allegiant Travel

Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited-frequency, nonstop flights between under-served cities and leisure destinations. As of February 1, 2024, it operated a fleet of 126 Airbus A320 series aircraft. The company also provides air-related services and products in conjunction with air transportation, including baggage fees, advance seat assignments, travel protection products, priority boarding, a customer convenience fee, food and beverage purchases on board, and other air-related services, as well as use of its call center for purchases. In addition, it offers third party travel products, such as hotel rooms and ground transportation, such as rental cars and hotel shuttle products; and air transportation services through fixed fee agreements and charter service on a year-round and ad-hoc basis. Further, the company operates a golf course. Allegiant Travel Company was founded in 1997 and is based in Las Vegas, Nevada.

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.