Financial Analysis: Air France-KLM (OTCMKTS:AFLYY) versus Cebu Air (OTCMKTS:CEBUF)

Air France-KLM (OTCMKTS:AFLYY) and Cebu Air (OTCMKTS:CEBUF) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Air France-KLM	3.35%	45.11%	2.86%
Cebu Air	N/A	N/A	N/A

Earnings and Valuation

This table compares Air France-KLM and Cebu Air”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Air France-KLM	$28.08 billion	0.12	$1.80 billion	$0.47	2.81
Cebu Air	N/A	N/A	N/A	$3.18	0.15

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

Institutional and Insider Ownership

0.9% of Air France-KLM shares are held by institutional investors. Comparatively, 7.0% of Cebu Air shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Air France-KLM and Cebu Air, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air France-KLM	0	6	3	0	2.33
Cebu Air	0	0	0	0	0.00

Summary

Air France-KLM beats Cebu Air on 7 of the 9 factors compared between the two stocks.

About Air France-KLM

Air France-KLM SA, together with its subsidiaries, provides passenger and cargo transportation services and aeronautical maintenance in Metropolitan France, Benelux, rest of Europe, and internationally. The company operates through three segments: Airframe maintenance, Engine Maintenance, and Component Support. It offers airframe maintenance, electronic, mechanical, pneumatic, hydraulic, and other services. The company was founded in 1919 and is headquartered in Paris, France.

About Cebu Air

Cebu Air, Inc., an airline, provides international and domestic air transportation services. The company offers scheduled air travel services to passengers, as well as airport-to-airport cargo services on its domestic and international routes. It also provides ancillary services, such as cancellation and rebooking options; in-flight merchandising, including sale of duty-free products on international flights; baggage services; and travel-related products and services. In addition, the company offers line maintenance services comprising certification and mechanic assistance; technical ramp, equipment handling; water and toilet servicing; aircraft ground support equipment operation; and light maintenance aircraft checks services. As of December 31, 2023, it operated a fleet of 85 aircrafts. The company was incorporated in 1988 and is headquartered in Pasay City, the Philippines. Cebu Air, Inc. is a subsidiary of CP Air Holdings, Inc.