Allegiant Travel (NASDAQ:ALGT) & Surf Air Mobility (NYSE:SRFM) Financial Review

Surf Air Mobility (NYSE:SRFM) and Allegiant Travel (NASDAQ:ALGT) are both small-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Earnings & Valuation

This table compares Surf Air Mobility and Allegiant Travel”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	$119.43 million	1.15	-$74.91 million	($2.48)	-0.89
Allegiant Travel	$2.61 billion	0.81	-$240.24 million	($2.57)	-44.67

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

Risk and Volatility

Surf Air Mobility has a beta of 3.03, meaning that its stock price is 203% more volatile than the S&P 500. Comparatively, Allegiant Travel has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Surf Air Mobility and Allegiant Travel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surf Air Mobility	1	1	2	0	2.25
Allegiant Travel	1	7	5	0	2.31

Surf Air Mobility currently has a consensus target price of $6.50, suggesting a potential upside of 195.45%. Allegiant Travel has a consensus target price of $100.18, suggesting a potential downside of 12.73%. Given Surf Air Mobility’s higher possible upside, equities research analysts plainly believe Surf Air Mobility is more favorable than Allegiant Travel.

Profitability

This table compares Surf Air Mobility and Allegiant Travel’s 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%
Allegiant Travel	-1.71%	6.60%	1.58%

Institutional and Insider Ownership

17.7% of Surf Air Mobility shares are held by institutional investors. Comparatively, 85.8% of Allegiant Travel shares are held by institutional investors. 8.0% of Surf Air Mobility shares are held by company insiders. Comparatively, 14.7% of Allegiant Travel shares are held by company 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.

Summary

Allegiant Travel beats Surf Air Mobility on 8 of the 14 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 Allegiant Travel

Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited-frequency, nonstop flights between under-served cities and leisure destinations. As of February 1, 2024, it operated a fleet of 126 Airbus A320 series aircraft. The company also provides air-related services and products in conjunction with air transportation, including baggage fees, advance seat assignments, travel protection products, priority boarding, a customer convenience fee, food and beverage purchases on board, and other air-related services, as well as use of its call center for purchases. In addition, it offers third party travel products, such as hotel rooms and ground transportation, such as rental cars and hotel shuttle products; and air transportation services through fixed fee agreements and charter service on a year-round and ad-hoc basis. Further, the company operates a golf course. Allegiant Travel Company was founded in 1997 and is based in Las Vegas, Nevada.