Surf Air Mobility (NYSE:SRFM) and International Consolidated Airlines Group (OTCMKTS:ICAGY) Critical Analysis

International Consolidated Airlines Group (OTCMKTS:ICAGY) and Surf Air Mobility (NYSE:SRFM) are both transportation companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Institutional and Insider Ownership

0.0% of International Consolidated Airlines Group shares are owned by institutional investors. Comparatively, 17.7% of Surf Air Mobility shares are owned by institutional investors. 8.0% of Surf Air Mobility shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

International Consolidated Airlines Group has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, Surf Air Mobility has a beta of 3.03, suggesting that its stock price is 203% more volatile than the S&P 500.

Profitability

This table compares International Consolidated Airlines Group and Surf Air Mobility’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Consolidated Airlines Group	9.52%	112.24%	15.51%
Surf Air Mobility	-66.95%	N/A	-58.16%

Analyst Ratings

This is a summary of current recommendations and price targets for International Consolidated Airlines Group and Surf Air Mobility, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Consolidated Airlines Group	1	1	3	1	2.67
Surf Air Mobility	1	1	2	0	2.25

Surf Air Mobility has a consensus price target of $6.50, indicating a potential upside of 222.58%. Given Surf Air Mobility’s higher probable upside, analysts plainly believe Surf Air Mobility is more favorable than International Consolidated Airlines Group.

Earnings & Valuation

This table compares International Consolidated Airlines Group and Surf Air Mobility”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Consolidated Airlines Group	$34.74 billion	0.76	$2.96 billion	$3.30	3.52
Surf Air Mobility	$119.43 million	1.06	-$74.91 million	($2.48)	-0.81

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

Summary

International Consolidated Airlines Group beats Surf Air Mobility on 10 of the 15 factors compared between the two stocks.

About International Consolidated Airlines Group

International Consolidated Airlines Group S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the United Kingdom, Spain, the United States, and rest of the world. It also provides aircraft leasing, aircraft maintenance, tour operation, air freight operations, call centre, ground handling, trustee, retail, IT, finance, procurement, storage and custody, aircraft technical assistance, human resources support, and airport infrastructure development services; and manages airline loyalty programmes. The company operates under the British Airways, Iberia, Vueling, Aer Lingus, and LEVEL brands. It operates a fleet of 582 aircrafts. The company was incorporated in 2009 and is headquartered in Harmondsworth, United Kingdom.

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.