Head-To-Head Review: Air Canada (OTCMKTS:ACDVF) & Air France-KLM (OTCMKTS:AFLYY)

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

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Air Canada $13.94 billion 0.60 $128.84 million N/A N/A
Air France-KLM $31.15 billion 0.15 $483.03 million $1.06 10.41



Air France-KLM has higher revenue and earnings than Air Canada.

Profitability

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

Net Margins Return on Equity Return on Assets
Air Canada 5.85% 21.91% 3.94%
Air France-KLM 1.35% 12.80% 1.02%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Air Canada and Air France-KLM, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Air Canada 0 1 4 0 2.80
Air France-KLM 1 6 3 0 2.20

Air Canada presently has a consensus target price of $32.00, indicating a potential upside of 1.49%. Air France-KLM has a consensus target price of $13.00, indicating a potential upside of 17.86%. Given Air France-KLM’s higher possible upside, analysts plainly believe Air France-KLM is more favorable than Air Canada.

Institutional & Insider Ownership

0.1% of Air Canada shares are held by institutional investors. Comparatively, 5.3% of Air France-KLM shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Air Canada beats Air France-KLM on 7 of the 11 factors compared between the two stocks.

About Air Canada

Air Canada provides domestic, U.S. transborder, and international airline services. It offers scheduled passenger services under the Air Canada Vacations and Air Canada Rouge brand name in the Canadian market, the Canada-U.S. transborder market, and in the international market to and from Canada, as well as through capacity purchase agreements on other regional carriers. As of December 31, 2018, the company operated a fleet of 184 aircraft under the Air Canada mainline brand name comprising 91 Boeing and Airbus narrow-body aircraft, 74 Boeing and Airbus wide-body aircraft, and 19 Embraer 190 regional jets; and 53 aircraft under the Air Canada Rouge brand name consisting of 22 Airbus A319 aircraft, 6 Airbus A321 aircraft, and 25 Boeing 767-300 aircraft. It also provides air cargo services in domestic and U.S. transborder routes, as well as on international routes between Canada and markets in Europe, Asia, South America, and Australia. In addition, the company operates, develops, markets, and distributes vacation travel packages in the Caribbean, Mexico, the United States, Europe, Central and South America, South Pacific, Australia, and Asia; and offers cruise packages in North America, Europe, and the Caribbean. Air Canada was founded in 1937 and is based in Saint-Laurent, Canada.

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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