Financial Contrast: Surf Air Mobility (NYSE:SRFM) and Deutsche Lufthansa (OTCMKTS:DLAKY)

Surf Air Mobility (NYSE:SRFM) and Deutsche Lufthansa (OTCMKTS:DLAKY) are both transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Risk & Volatility

Surf Air Mobility has a beta of 2.87, suggesting that its share price is 187% more volatile than the S&P 500. Comparatively, Deutsche Lufthansa has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Valuation and Earnings

This table compares Surf Air Mobility and Deutsche Lufthansa”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surf Air Mobility	$119.43 million	1.79	-$74.91 million	($2.78)	-1.79
Deutsche Lufthansa	$40.67 billion	0.25	$1.49 billion	$1.67	5.08

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

Analyst Ratings

This is a breakdown of current recommendations for Surf Air Mobility and Deutsche Lufthansa, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surf Air Mobility	1	1	2	0	2.25
Deutsche Lufthansa	0	5	0	1	2.33

Surf Air Mobility currently has a consensus target price of $6.58, suggesting a potential upside of 32.20%. Given Surf Air Mobility’s higher possible upside, research analysts plainly believe Surf Air Mobility is more favorable than Deutsche Lufthansa.

Profitability

This table compares Surf Air Mobility and Deutsche Lufthansa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Surf Air Mobility	-53.48%	N/A	-46.15%
Deutsche Lufthansa	4.76%	17.23%	3.94%

Insider and Institutional Ownership

17.7% of Surf Air Mobility shares are owned by institutional investors. 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 company is poised for long-term growth.

Summary

Deutsche Lufthansa beats Surf Air Mobility on 9 of the 15 factors compared between the two stocks.

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.

About Deutsche Lufthansa

Deutsche Lufthansa AG operates as an aviation company worldwide. It operates in three segments: Passenger Airlines; Logistics; and Maintenance, Repair and Overhaul Services (MRO). The Passenger Airlines segment offers products and services to passengers of Lufthansa Airlines, SWISS, Austrian Airlines, Brussels Airlines, and Eurowings. Its Logistics segment offers airfreight container management, urgent shipments, and customs clearance services; and e-commerce solutions. The MRO segment provides maintenance, repair, and overhaul services for civil commercial aircraft serving original equipment manufacturers, aircraft leasing companies, operators of VIP jets, government, armed forces, and airlines. The company also offers corporate payment and billing services; vocational and professional training for cockpit and cabin crew; and IT solutions. As of December 31, 2023, it had a fleet of 721 aircraft. Deutsche Lufthansa AG was founded in 1926 and is headquartered in Cologne, Germany.