Joby Aviation (NYSE:JOBY) versus LATAM Airlines Group (NYSE:LTM) Critical Comparison

Joby Aviation (NYSE:JOBY) and LATAM Airlines Group (NYSE:LTM) are both large-cap transportation companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Joby Aviation	N/A	-77.03%	-55.91%
LATAM Airlines Group	8.99%	136.76%	7.71%

Earnings and Valuation

This table compares Joby Aviation and LATAM Airlines Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Joby Aviation	$140,000.00	105,961.86	-$608.03 million	($1.34)	-12.14
LATAM Airlines Group	$12.83 billion	1.33	$976.97 million	$4.19	13.49

LATAM Airlines Group has higher revenue and earnings than Joby Aviation. Joby Aviation 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.

Volatility & Risk

Joby Aviation has a beta of 2.56, suggesting that its stock price is 156% more volatile than the S&P 500. Comparatively, LATAM Airlines Group has a beta of 3.88, suggesting that its stock price is 288% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Joby Aviation	3	5	1	0	1.78
LATAM Airlines Group	0	2	2	0	2.50

Joby Aviation presently has a consensus target price of $13.43, indicating a potential downside of 17.46%. LATAM Airlines Group has a consensus target price of $59.25, indicating a potential upside of 4.85%. Given LATAM Airlines Group’s stronger consensus rating and higher probable upside, analysts plainly believe LATAM Airlines Group is more favorable than Joby Aviation.

Institutional and Insider Ownership

52.9% of Joby Aviation shares are owned by institutional investors. 32.4% of Joby Aviation shares are owned by company insiders. Comparatively, 7.8% of LATAM Airlines Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

LATAM Airlines Group beats Joby Aviation on 10 of the 13 factors compared between the two stocks.

About Joby Aviation

Joby Aviation, Inc., a vertically integrated air mobility company, engages in building an electric vertical takeoff and landing aircraft optimized to deliver air transportation as a service. The company intends to build an aerial ridesharing service, as well as developing an application-based platform that will enable consumers to book rides. Joby Aviation, Inc. was founded in 2009 and is headquartered in Santa Cruz, California.

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.