Reviewing Air France-KLM (OTC:AFLYY) & Sun Country Airlines (NASDAQ:SNCY)

Air France-KLM (OTC:AFLYY) and Sun Country Airlines (NASDAQ:SNCY) are both transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Volatility and Risk

Air France-KLM has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, Sun Country Airlines has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Earnings and Valuation

This table compares Air France-KLM and Sun Country Airlines”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Air France-KLM	$32.49 billion	0.07	$1.01 billion	$0.10	9.20
Sun Country Airlines	$1.08 billion	0.77	$52.90 million	$0.95	16.51

Air France-KLM has higher revenue and earnings than Sun Country Airlines. Air France-KLM is trading at a lower price-to-earnings ratio than Sun Country Airlines, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

0.9% of Air France-KLM shares are held by institutional investors. 4.6% of Sun Country Airlines shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Air France-KLM and Sun Country Airlines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Air France-KLM	0.39%	19.62%	0.34%
Sun Country Airlines	4.92%	10.23%	3.49%

Analyst Ratings

This is a summary of recent recommendations and price targets for Air France-KLM and Sun Country Airlines, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air France-KLM	0	1	0	0	2.00
Sun Country Airlines	0	2	5	0	2.71

Sun Country Airlines has a consensus target price of $19.29, suggesting a potential upside of 23.00%. Given Sun Country Airlines’ stronger consensus rating and higher possible upside, analysts plainly believe Sun Country Airlines is more favorable than Air France-KLM.

Summary

Sun Country Airlines beats Air France-KLM on 9 of the 14 factors compared between the two stocks.

About Air France-KLM

AIR FRANCE-KLM is an airline company. The Company’s core business is passenger transport, cargo transport, and aircraft maintenance services. The Group is the world leader in terms of international passenger traffic; and its cargo activity (not including integrators) and is one of the world’s major maintenance service providers. The Group structure is simple: a holding company with two airline subsidiaries. Air France-KLM has established a set of clearly defined commitments to ensure that its strategy of profitable growth goes hand in hand with environmental quality and social progress.

About Sun Country Airlines

Sun Country Airlines Holdings, Inc., an air carrier company, operates scheduled passenger, air cargo, charter air transportation, and related services in the United States, Latin America, and internationally. It operates through two segments, Passenger and Cargo. The company also provides crew, maintenance, and insurance services through ad hoc, repeat, short-term, and long-term service contracts; and loyalty program rewards. As of December 31, 2023, its fleet consisted of 60 Boeing 737-NG aircraft, which includes 42 passenger fleet, 12 cargo, and 6 leased to unaffiliated airlines aircraft. The company serves leisure, and visiting friends and relatives passengers; charter and cargo customers; military branches; collegiate and professional sports teams; wholesale tour operators; schools; companies; and other individual entities through its website, call center, and travel agents. Sun Country Airlines Holdings, Inc. was founded in 1983 and is headquartered in Minneapolis, Minnesota.