Critical Survey: LATAM Airlines Group (OTCMKTS:LTMAQ) and Harbor Diversified (OTCMKTS:HRBR)

Harbor Diversified (OTCMKTS:HRBR) and LATAM Airlines Group (OTCMKTS:LTMAQ) are both small-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

0.0% of Harbor Diversified shares are owned by institutional investors. 1.0% of Harbor Diversified shares are owned by insiders. Comparatively, 7.8% of LATAM Airlines Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Harbor Diversified and LATAM Airlines Group’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harbor Diversified	$280.86 million	0.33	$39.11 million	($0.18)	-9.39
LATAM Airlines Group	$4.88 billion	0.00	-$4.65 billion	($7.17)	N/A

Harbor Diversified has higher earnings, but lower revenue than LATAM Airlines Group. Harbor Diversified is trading at a lower price-to-earnings ratio than LATAM Airlines Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Harbor Diversified and LATAM Airlines Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Harbor Diversified	-2.30%	-2.32%	-1.45%
LATAM Airlines Group	-59.52%	N/A	-31.39%

Analyst Recommendations

This is a breakdown of current ratings for Harbor Diversified and LATAM Airlines Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harbor Diversified	0	0	0	0	N/A
LATAM Airlines Group	0	0	0	0	N/A

Risk and Volatility

Harbor Diversified has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500. Comparatively, LATAM Airlines Group has a beta of 2.73, indicating that its stock price is 173% more volatile than the S&P 500.

About Harbor Diversified

Harbor Diversified, Inc., together with its subsidiaries, provides air transportation services in the United States. It also leases and finances flight equipment. As of December 31, 2022, it owned and operated a fleet of 64 regional jets. The company was formerly known as Harbor BioSciences, Inc. and changed its name to Harbor Diversified, Inc. in February 2012. Harbor Diversified, Inc. was incorporated in 1992 and is headquartered in Appleton, Wisconsin.

About LATAM Airlines Group

LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services primarily in Chile, Peru, Ecuador, Colombia, Brazil, other Latin American countries, the Caribbean, North America, Europe, and Oceania. As of June 30, 2022, it provided passenger transport services to 133 destinations in 20 countries and cargo services to approximately 141 destinations in 23 countries, with an operating fleet of 300 aircraft and subleased one B767 cargo freighter to a third party. The company was formerly known as LAN Airlines S.A. and changed its name to LATAM Airlines Group S.A. in June 2012. LATAM Airlines Group S.A. was founded in 1929 and is headquartered in Santiago, Chile. On May 26, 2020, LATAM Airlines Group S.A., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.