Reviewing Surf Air Mobility (NYSE:SRFM) and Controladora Vuela Compania de Aviacion (NYSE:VLRS)

Surf Air Mobility (NYSE:SRFM) and Controladora Vuela Compania de Aviacion (NYSE:VLRS) are both small-cap transportation companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

17.7% of Surf Air Mobility shares are owned by institutional investors. Comparatively, 53.3% of Controladora Vuela Compania de Aviacion shares are owned by institutional investors. 8.0% of Surf Air Mobility shares are owned by company insiders. Comparatively, 2.5% of Controladora Vuela Compania de Aviacion shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Surf Air Mobility and Controladora Vuela Compania de Aviacion”s top-line 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	1.46	-$74.91 million	($2.78)	-1.46
Controladora Vuela Compania de Aviacion	$3.14 billion	0.25	$126.38 million	($0.54)	-12.27

Controladora Vuela Compania de Aviacion has higher revenue and earnings than Surf Air Mobility. Controladora Vuela Compania de Aviacion 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Surf Air Mobility and Controladora Vuela Compania de Aviacion, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surf Air Mobility	1	1	2	0	2.25
Controladora Vuela Compania de Aviacion	1	4	5	0	2.40

Surf Air Mobility presently has a consensus price target of $6.58, indicating a potential upside of 61.95%. Controladora Vuela Compania de Aviacion has a consensus price target of $8.22, indicating a potential upside of 24.09%. Given Surf Air Mobility’s higher probable upside, equities research analysts clearly believe Surf Air Mobility is more favorable than Controladora Vuela Compania de Aviacion.

Profitability

This table compares Surf Air Mobility and Controladora Vuela Compania de Aviacion’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%
Controladora Vuela Compania de Aviacion	-2.07%	-20.74%	-1.09%

Volatility & Risk

Surf Air Mobility has a beta of 2.87, indicating that its stock price is 187% more volatile than the S&P 500. Comparatively, Controladora Vuela Compania de Aviacion has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500.

Summary

Controladora Vuela Compania de Aviacion 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 Controladora Vuela Compania de Aviacion

Controladora Vuela Compañía de Aviación, S.A.B. de C.V., through its subsidiary, Concesionaria Vuela Compañía de Aviación, S.A.P.I. de C.V., provides air transportation services for passengers, cargo, and mail in Mexico and internationally. The company operates approximately 590 daily flights on routes connecting 43 cities in Mexico, 22 cities in the United States, 4 cities in Central America, and 2 cities in South America. As of December 31, 2022, it leased 116 aircrafts and 23 spare engines. The company also offers merchandising, travel agency, and loyalty program, as well as specialized and aeronautical technical services. Controladora Vuela Compañía de Aviación, S.A.B. de C.V. was incorporated in 2005 and is headquartered in Mexico City, Mexico.