Critical Analysis: KLM Royal Dutch Airlines (OTCMKTS:KLMR) versus Joby Aviation (NYSE:JOBY)

Joby Aviation (NYSE:JOBYGet Free Report) and KLM Royal Dutch Airlines (OTCMKTS:KLMRGet Free Report) are both transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Institutional & Insider Ownership

52.8% of Joby Aviation shares are held by institutional investors. 20.4% of Joby Aviation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Joby Aviation and KLM Royal Dutch Airlines’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Joby Aviation -1,232.62% -60.54% -42.52%
KLM Royal Dutch Airlines N/A N/A N/A

Volatility and Risk

Joby Aviation has a beta of 2.71, suggesting that its share price is 171% more volatile than the S&P 500. Comparatively, KLM Royal Dutch Airlines has a beta of 680.62, suggesting that its share price is 67,962% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Joby Aviation and KLM Royal Dutch Airlines, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Joby Aviation 3 3 2 0 1.88
KLM Royal Dutch Airlines 0 0 0 0 0.00

Joby Aviation currently has a consensus price target of $13.64, indicating a potential upside of 96.72%. Given Joby Aviation’s stronger consensus rating and higher possible upside, equities analysts clearly believe Joby Aviation is more favorable than KLM Royal Dutch Airlines.

Valuation & Earnings

This table compares Joby Aviation and KLM Royal Dutch Airlines”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Joby Aviation $53.42 million 127.70 -$929.84 million ($1.15) -6.03
KLM Royal Dutch Airlines $14.90 billion N/A $320.11 million N/A N/A

KLM Royal Dutch Airlines has higher revenue and earnings than Joby Aviation.

Summary

KLM Royal Dutch Airlines beats Joby Aviation on 6 of the 11 factors compared between the two stocks.

About Joby Aviation

(Get Free Report)

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 KLM Royal Dutch Airlines

(Get Free Report)

KLM Royal Dutch Airlines, together with its subsidiaries, provides passengers and cargo air transportation, aircraft maintenance, leisure, and other services in the Netherlands and internationally. The company operates through Network, Maintenance, Leisure, and Other segments. It also provides engine, component, and airframe maintenance services to other airlines and clients; and catering and handling services to third-party airlines and clients. In addition, the company sells cargo capacity to third parties. Further, it operates charter and scheduled flights through transavia.com. The company was founded in 1919 and is headquartered in Amstelveen, the Netherlands. KLM Royal Dutch Airlines is a subsidiary of Air France KLM S.A.

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