Analyzing Surf Air Mobility (NYSE:SRFM) & LATAM Airlines Group (NYSE:LTM)

LATAM Airlines Group (NYSE:LTM) and Surf Air Mobility (NYSE:SRFM) are both transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Analyst Ratings

This is a summary of current ratings and price targets for LATAM Airlines Group and Surf Air Mobility, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LATAM Airlines Group	0	2	0	0	2.00
Surf Air Mobility	1	1	2	0	2.25

Surf Air Mobility has a consensus target price of $6.50, indicating a potential upside of 158.45%. Given Surf Air Mobility’s stronger consensus rating and higher possible upside, analysts plainly believe Surf Air Mobility is more favorable than LATAM Airlines Group.

Earnings and Valuation

This table compares LATAM Airlines Group and Surf Air Mobility”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LATAM Airlines Group	$13.07 billion	1.03	$976.97 million	$3.89	11.44
Surf Air Mobility	$108.16 million	1.22	-$74.91 million	($2.48)	-1.01

LATAM Airlines Group has higher revenue and earnings than Surf Air Mobility. Surf Air Mobility 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.

Institutional and Insider Ownership

17.7% of Surf Air Mobility shares are owned by institutional investors. 7.8% of LATAM Airlines Group shares are owned by insiders. Comparatively, 8.0% of Surf Air Mobility shares are owned by insiders. 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.

Risk and Volatility

LATAM Airlines Group has a beta of 3.61, suggesting that its stock price is 261% more volatile than the S&P 500. Comparatively, Surf Air Mobility has a beta of 2.85, suggesting that its stock price is 185% more volatile than the S&P 500.

Profitability

This table compares LATAM Airlines Group and Surf Air Mobility’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LATAM Airlines Group	8.79%	143.14%	7.44%
Surf Air Mobility	-66.95%	N/A	-58.16%

Summary

LATAM Airlines Group beats Surf Air Mobility on 8 of the 14 factors compared between the two stocks.

About LATAM Airlines Group

LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Peru, Argentina, the United States, Europe, Colombia, Brazil, Ecuador, Chile, the Asia Pacific, and rest of Latin America. The company operates in two segments, Air Transportation; and Multiplus Coalition and Loyalty Program. It provides passenger transport services to approximately 140 destinations in 25 countries with a fleet of 322 aircrafts, well as operates loyalty programs. 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 based in Santiago, Chile.

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.