Head to Head Analysis: Cathay Pacific Airways (OTCMKTS:CPCAY) and Surf Air Mobility (NYSE:SRFM)

Surf Air Mobility (NYSE:SRFM) and Cathay Pacific Airways (OTCMKTS:CPCAY) are both transportation companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Insider & 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 will outperform the market over the long term.

Profitability

This table compares Surf Air Mobility and Cathay Pacific Airways’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Surf Air Mobility	-66.95%	N/A	-58.16%
Cathay Pacific Airways	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and recommmendations for Surf Air Mobility and Cathay Pacific Airways, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surf Air Mobility	1	1	2	0	2.25
Cathay Pacific Airways	1	1	0	0	1.50

Surf Air Mobility presently has a consensus price target of $6.50, indicating a potential upside of 222.58%. Given Surf Air Mobility’s stronger consensus rating and higher probable upside, research analysts plainly believe Surf Air Mobility is more favorable than Cathay Pacific Airways.

Earnings and Valuation

This table compares Surf Air Mobility and Cathay Pacific Airways”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surf Air Mobility	$108.16 million	1.17	-$74.91 million	($2.48)	-0.81
Cathay Pacific Airways	$13.38 billion	0.78	$1.23 billion	N/A	N/A

Cathay Pacific Airways has higher revenue and earnings than Surf Air Mobility.

Risk and Volatility

Surf Air Mobility has a beta of 3.03, suggesting that its stock price is 203% more volatile than the S&P 500. Comparatively, Cathay Pacific Airways has a beta of 0.03, suggesting that its stock price is 97% less volatile than the S&P 500.

Summary

Surf Air Mobility beats Cathay Pacific Airways on 7 of the 11 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 Cathay Pacific Airways

Cathay Pacific Airways Limited, together with its subsidiaries, offers international passenger and air cargo transportation services. The company conducts airline operations principally to and from Hong Kong. It also engages in the property investment and travel reward program; operates as a travel tour operator; and provision of financial, aircraft acquisition facilitation, airline catering, information processing, aircraft ramp handling, laundry and dry cleaning, ground handling, and cargo terminal services. The company operates in the Americas, Europe, Southeast Asia, Southwest Pacific, North Asia, South Asia, the Middle East, and Africa. As of December 31, 2023, it operates 230 aircraft. Cathay Pacific Airways Limited was founded in 1946 and is headquartered in Lantau Island, Hong Kong.