Head to Head Contrast: Frontier Group (NASDAQ:ULCC) and Joby Aviation (NYSE:JOBY)

Joby Aviation (NYSE:JOBY) and Frontier Group (NASDAQ:ULCC) are both transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Insider and Institutional Ownership

52.9% of Joby Aviation shares are owned by institutional investors. 28.5% of Joby Aviation shares are owned by insiders. Comparatively, 48.0% of Frontier Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Joby Aviation has a beta of 2.52, suggesting that its share price is 152% more volatile than the S&P 500. Comparatively, Frontier Group has a beta of 2.57, suggesting that its share price is 157% more volatile than the S&P 500.

Earnings & Valuation

This table compares Joby Aviation and Frontier Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Joby Aviation	$140,000.00	91,192.44	-$608.03 million	($1.34)	-11.13
Frontier Group	$3.78 billion	0.24	$85.00 million	($0.61)	-6.44

Frontier Group has higher revenue and earnings than Joby Aviation. Joby Aviation is trading at a lower price-to-earnings ratio than Frontier Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Joby Aviation and Frontier Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Joby Aviation	2	5	1	0	1.88
Frontier Group	1	7	2	0	2.10

Joby Aviation currently has a consensus price target of $14.00, suggesting a potential downside of 6.13%. Frontier Group has a consensus price target of $6.13, suggesting a potential upside of 55.85%. Given Frontier Group’s stronger consensus rating and higher probable upside, analysts plainly believe Frontier Group is more favorable than Joby Aviation.

Profitability

This table compares Joby Aviation and Frontier Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Joby Aviation	N/A	-77.17%	-58.08%
Frontier Group	-3.65%	-24.29%	-2.13%

Summary

Frontier Group beats Joby Aviation on 11 of the 14 factors compared between the two stocks.

About Joby Aviation

Joby Aviation, Inc., a vertically integrated air mobility company, engages in building an electric vertical takeoff and landing aircraft optimized to deliver air transportation as a service. The company intends to build an aerial ridesharing service, as well as developing an application-based platform that will enable consumers to book rides. Joby Aviation, Inc. was founded in 2009 and is headquartered in Santa Cruz, California.

About Frontier Group

Frontier Group Holdings, Inc., provides low-fare passenger airline services to leisure travelers in the United States and Latin America. The company sells its products through direct distribution channels, including its website, mobile app, and contact centers. As of December 31, 2023, it had a fleet of 136 Airbus single-aisle aircrafts. Frontier Group Holdings, Inc. was founded in 1994 and is headquartered in Denver, Colorado.