A Comparative Analysis of Deutsche Lufthansa and Air France-KLM

On March 17, 2025, a comparison was made between Deutsche Lufthansa (OTCMKTS:DLAKY) and Air France-KLM (OTC:AFLYY) to evaluate which of these mid-cap transportation companies stands as the superior choice for investors.

Volatility and Risk

Deutsche Lufthansa has a beta value of 1.16, which indicates that its stock is about 16% more volatile than the S&P 500 index. On the other hand, Air France-KLM has a higher beta of 1.58, suggesting its stock is 58% more volatile compared to the same index.

Valuation & Earnings

The following table highlights a side-by-side comparison of Deutsche Lufthansa and Air France-KLM regarding their gross revenue, earnings per share (EPS), and valuation:

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Lufthansa	$38.36 billion	0.26	$1.81 billion	$1.26	6.49
Air France-KLM	$32.49 billion	0.08	$1.01 billion	$0.11	9.55

From this data, it is evident that Deutsche Lufthansa has higher gross revenue and earnings than Air France-KLM. Furthermore, it is trading at a lower price-to-earnings ratio, indicating it is currently perceived as the more affordable stock.

Institutional & Insider Ownership

Only 0.9% of Air France-KLM's shares are held by institutional investors. A higher level of institutional ownership typically indicates that significant investors like endowments and hedge funds believe the company is well-positioned for long-term growth.

Analyst Ratings

Recent recommendations and price targets for both companies, compiled by MarketBeat.com, are summarized below:

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Lufthansa	1	3	0	2	2.50
Air France-KLM	0	1	0	0	2.00

Profitability

Comparisons of net margins, return on equity, and return on assets for both companies are listed below:

	Net Margins	Return on Equity	Return on Assets
Deutsche Lufthansa	2.46%	11.33%	2.41%
Air France-KLM	0.39%	19.62%	0.34%

Summary

In summary, Deutsche Lufthansa outperforms Air France-KLM in 8 out of 12 comparative factors.

About Deutsche Lufthansa

Deutsche Lufthansa AG is a global aviation company that operates through three main segments: Passenger Airlines, Logistics, and Maintenance, Repair, and Overhaul Services (MRO). The Passenger Airlines segment includes leading brands like Lufthansa Airlines, SWISS, and Austrian Airlines. The Logistics segment handles services such as airfreight container management and urgent shipments. The MRO segment focuses on servicing civil commercial aircraft. As of December 31, 2023, the company boasts a fleet of 721 aircraft and was founded in 1926, with headquarters in Cologne, Germany.

About Air France-KLM

Air France-KLM is a prominent airline group engaged primarily in passenger and cargo transport, as well as aircraft maintenance. It stands as a leader in international passenger traffic and boasts significant capabilities in cargo operations. The group is structured as a holding company with two airline subsidiaries, aiming for profitable growth intertwined with environmental and social commitments.

Airline, Analysis, Stocks