United Continental (NASDAQ:UAL) & Air France-KLM (NASDAQ:AFLYY) Head to Head Contrast

United Continental (NASDAQ:UAL) and Air France-KLM (OTCMKTS:AFLYY) are both transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Earnings & Valuation

This table compares United Continental and Air France-KLM’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United Continental $41.30 billion 0.56 $2.13 billion $9.13 9.54
Air France-KLM $31.15 billion 0.13 $483.03 million $1.06 8.68



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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for United Continental and Air France-KLM, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Continental 1 3 13 0 2.71
Air France-KLM 2 4 1 0 1.86

United Continental currently has a consensus target price of $102.56, indicating a potential upside of 17.73%. Air France-KLM has a consensus target price of $13.00, indicating a potential upside of 41.23%. Given Air France-KLM’s higher probable upside, analysts plainly believe Air France-KLM is more favorable than United Continental.

Insider & Institutional Ownership

99.9% of United Continental shares are held by institutional investors. Comparatively, 5.3% of Air France-KLM shares are held by institutional investors. 0.4% of United Continental shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

United Continental has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Air France-KLM has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Profitability

This table compares United Continental and Air France-KLM’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Continental 5.43% 28.41% 5.82%
Air France-KLM 1.35% 12.80% 1.02%

Summary

United Continental beats Air France-KLM on 13 of the 14 factors compared between the two stocks.

About United Continental

United Continental Holdings, Inc., through its subsidiaries, provides air transportation services in North America, Asia, Europe, the Middle East, and Latin America. It transports people and cargo through its mainline and regional operations. As of December 31, 2018, the company operated a fleet of 1,329 aircraft. It also sells fuel; and offers catering, ground handling, and maintenance services for third parties. The company was formerly known as UAL Corporation and changed its name to United Continental Holdings, Inc. in October 2010. United Continental Holdings, Inc. was founded in 1934 and is headquartered in Chicago, Illinois.

About Air France-KLM

Air France-KLM SA, together with its subsidiaries, provides passenger transportation services on scheduled flights. The company operates through Network, Maintenance, Transavia, and Other segments. It also offers cargo transportation and aeronautics maintenance services; and other air-transport-related services. The company operates in France, Benelux, Europe, Africa, the Middle East, Gulf, India, the Asia-Pacific, North America, Caribbean, West Indies, French Guyana, Indian Ocean, and South America. As of December 31, 2018, it operated fleet of 548 aircraft. Air France-KLM SA was founded in 1919 and is headquartered in Paris, France.

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