Head to Head Review: Mesa Air Group (NASDAQ:RJET) versus Surf Air Mobility (NYSE:SRFM)
by Kim Johansen · The Markets DailyMesa Air Group (NASDAQ:RJET – Get Free Report) and Surf Air Mobility (NYSE:SRFM – Get Free Report) are both small-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Risk and Volatility
Mesa Air Group has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500. Comparatively, Surf Air Mobility has a beta of 3.34, indicating that its stock price is 234% more volatile than the S&P 500.
Valuation and Earnings
This table compares Mesa Air Group and Surf Air Mobility”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mesa Air Group | $1.68 billion | 0.51 | $76.20 million | ($1.77) | -10.38 |
| Surf Air Mobility | $106.56 million | 0.84 | -$110.56 million | ($3.48) | -0.33 |
Mesa Air Group has higher revenue and earnings than Surf Air Mobility. Mesa Air Group 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.
Insider and Institutional Ownership
13.3% of Mesa Air Group shares are owned by institutional investors. Comparatively, 17.7% of Surf Air Mobility shares are owned by institutional investors. 3.2% of Mesa Air Group shares are owned by insiders. Comparatively, 8.0% of Surf Air Mobility shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Mesa Air Group and Surf Air Mobility’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mesa Air Group | -6.32% | 4.28% | 1.43% |
| Surf Air Mobility | -103.75% | N/A | -70.52% |
Analyst Recommendations
This is a breakdown of current ratings for Mesa Air Group and Surf Air Mobility, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mesa Air Group | 1 | 0 | 0 | 0 | 1.00 |
| Surf Air Mobility | 1 | 1 | 1 | 0 | 2.00 |
Surf Air Mobility has a consensus target price of $3.13, indicating a potential upside of 168.24%. Given Surf Air Mobility’s stronger consensus rating and higher probable upside, analysts clearly believe Surf Air Mobility is more favorable than Mesa Air Group.
Summary
Surf Air Mobility beats Mesa Air Group on 8 of the 14 factors compared between the two stocks.
About Mesa Air Group
Mesa Air Group, Inc. operates as the holding company for Mesa Airlines, Inc. that provides regional air carrier scheduled passenger services. The company offers scheduled flight and cargo services. As of September 30, 2023, it operated a fleet of 80 aircraft with approximately 296 daily departures to 86 cities in the United States and Mexico. Mesa Air Group, Inc. was founded in 1982 and is headquartered in Phoenix, Arizona.
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.