Joby Aviation (NYSE:JOBY) versus Deutsche Lufthansa (OTCMKTS:DLAKY) Critical Review

Deutsche Lufthansa (OTCMKTS:DLAKY) and Joby Aviation (NYSE:JOBY) are both large-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Valuation & Earnings

This table compares Deutsche Lufthansa and Joby Aviation”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Lufthansa	$40.67 billion	0.30	$1.49 billion	$1.61	6.36
Joby Aviation	$140,000.00	68,839.39	-$608.03 million	($1.34)	-7.89

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Deutsche Lufthansa	4.45%	15.73%	3.59%
Joby Aviation	N/A	-77.03%	-55.91%

Analyst Recommendations

This is a summary of current recommendations and price targets for Deutsche Lufthansa and Joby Aviation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Lufthansa	1	4	1	2	2.50
Joby Aviation	3	5	1	0	1.78

Joby Aviation has a consensus price target of $13.43, indicating a potential upside of 27.04%. Given Joby Aviation’s higher possible upside, analysts clearly believe Joby Aviation is more favorable than Deutsche Lufthansa.

Risk & Volatility

Deutsche Lufthansa has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Joby Aviation has a beta of 2.56, suggesting that its share price is 156% more volatile than the S&P 500.

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. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Deutsche Lufthansa beats Joby Aviation on 9 of the 14 factors compared between the two stocks.

About Deutsche Lufthansa

Deutsche Lufthansa AG operates as an aviation company worldwide. It operates in three segments: Passenger Airlines; Logistics; and Maintenance, Repair and Overhaul Services (MRO). The Passenger Airlines segment offers products and services to passengers of Lufthansa Airlines, SWISS, Austrian Airlines, Brussels Airlines, and Eurowings. Its Logistics segment offers airfreight container management, urgent shipments, and customs clearance services; and e-commerce solutions. The MRO segment provides maintenance, repair, and overhaul services for civil commercial aircraft serving original equipment manufacturers, aircraft leasing companies, operators of VIP jets, government, armed forces, and airlines. The company also offers corporate payment and billing services; vocational and professional training for cockpit and cabin crew; and IT solutions. As of December 31, 2023, it had a fleet of 721 aircraft. Deutsche Lufthansa AG was founded in 1926 and is headquartered in Cologne, Germany.

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.