LATAM Airlines Group (OTCMKTS:LTMAQ) and Harbor Diversified (OTCMKTS:HRBR) Head-To-Head Analysis

LATAM Airlines Group (OTCMKTS:LTMAQ) and Harbor Diversified (OTCMKTS:HRBR) are both small-cap transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Valuation & Earnings

This table compares LATAM Airlines Group and Harbor Diversified’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LATAM Airlines Group	$4.88 billion	0.05	-$4.65 billion	($7.17)	-0.06
Harbor Diversified	$280.86 million	0.33	$39.11 million	($0.18)	-9.39

Harbor Diversified has lower revenue, but higher earnings than LATAM Airlines Group. Harbor Diversified is trading at a lower price-to-earnings ratio than LATAM Airlines Group, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

LATAM Airlines Group has a beta of 2.73, indicating that its share price is 173% more volatile than the S&P 500. Comparatively, Harbor Diversified has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500.

Profitability

This table compares LATAM Airlines Group and Harbor Diversified’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LATAM Airlines Group	-59.52%	N/A	-31.39%
Harbor Diversified	-2.30%	-2.32%	-1.45%

Institutional & Insider Ownership

0.0% of Harbor Diversified shares are held by institutional investors. 7.8% of LATAM Airlines Group shares are held by company insiders. Comparatively, 1.0% of Harbor Diversified shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for LATAM Airlines Group and Harbor Diversified, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LATAM Airlines Group	0	0	0	0	N/A
Harbor Diversified	0	0	0	0	N/A

Summary

Harbor Diversified beats LATAM Airlines Group on 6 of the 11 factors compared between the two stocks.

About LATAM Airlines Group

LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services primarily in Chile, Peru, Ecuador, Colombia, Brazil, other Latin American countries, the Caribbean, North America, Europe, and Oceania. As of June 30, 2022, it provided passenger transport services to 133 destinations in 20 countries and cargo services to approximately 141 destinations in 23 countries, with an operating fleet of 300 aircraft and subleased one B767 cargo freighter to a third party. The company was formerly known as LAN Airlines S.A. and changed its name to LATAM Airlines Group S.A. in June 2012. LATAM Airlines Group S.A. was founded in 1929 and is headquartered in Santiago, Chile. On May 26, 2020, LATAM Airlines Group S.A., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.

About Harbor Diversified

Harbor Diversified, Inc., together with its subsidiaries, provides air transportation services in the United States. It also leases and finances flight equipment. As of December 31, 2022, it owned and operated a fleet of 64 regional jets. The company was formerly known as Harbor BioSciences, Inc. and changed its name to Harbor Diversified, Inc. in February 2012. Harbor Diversified, Inc. was incorporated in 1992 and is headquartered in Appleton, Wisconsin.