Head-To-Head Analysis: Japan Airlines (OTCMKTS:JAPSY) & Bank of Communications (OTCMKTS:BCMXY)

Earnings & Valuation

This table compares Japan Airlines and Bank of Communications”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Japan Airlines	$11.44 billion	0.72	$659.18 million	$0.81	11.67
Bank of Communications	$78.35 billion	0.76	$13.10 billion	$4.02	4.99

Bank of Communications has higher revenue and earnings than Japan Airlines. Bank of Communications is trading at a lower price-to-earnings ratio than Japan Airlines, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Japan Airlines has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Bank of Communications has a beta of -0.14, meaning that its stock price is 114% less volatile than the S&P 500.

Dividends

Japan Airlines pays an annual dividend of $0.15 per share and has a dividend yield of 1.6%. Bank of Communications pays an annual dividend of $1.08 per share and has a dividend yield of 5.4%. Japan Airlines pays out 18.5% of its earnings in the form of a dividend. Bank of Communications pays out 26.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Japan Airlines and Bank of Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Japan Airlines	5.86%	10.94%	3.81%
Bank of Communications	15.61%	7.57%	0.60%

Summary

Bank of Communications beats Japan Airlines on 6 of the 11 factors compared between the two stocks.

About Japan Airlines

Japan Airlines Co., Ltd., together with its subsidiaries, provides scheduled and non-scheduled air transport services in Japan, Asia, Oceania, North America, and Europe. The company operates through Air Transportation and Other segments. It offers passenger, ground handling, cargo and mail handling, and maintenance services. The company is also involved in the aerial work and other related business; airport peripheral business; and sale of travel package tours. As of March 31, 2023, it operated a fleet of 224 aircraft. The company was formerly known as Japan Airlines International Co., Ltd. and changed its name to Japan Airlines Co., Ltd. in April 2011. The company was founded in 1951 and is headquartered in Tokyo, Japan.

About Bank of Communications

Bank of Communications Co., Ltd. provides commercial banking products and services in China. The company offers savings deposit products, including demand deposits, lump-sum deposits and withdrawal, time deposit of small savings for lump-sum withdrawal, interest withdrawal on principal deposited, time-demand deposit, call deposit, swap management, and education deposit; personal certificate of deposit; salary financing A; and foreign currency deposit. It also provides credit, quasi-credit, and debit cards; new housing and second-hand mortgage loans and unsecured personal loans; personal wealth management advisor services; and precious metal and commodity trading services. In addition, the company offers corporate structured deposit and corporate certificate of deposit; corporate cash management; industrial chain finance program comprising prepayment financing, inventory financing, accounts receivable financing and accounts payable financing; syndicated loans; corporation overdraft; investment banking services; and offshore banking services, such as repayment financing, inventory financing, accounts receivable financing and accounts payable financing, and forex currencies. Further, it provides bond account activation, bond distribution, and transaction services; related bond escrow and settlement, pledge registration, and principal and interest payment services; training and consulting services for cooperative banks; cross-border inter-bank payments system services; consignment sales of precious metal products; bond underwriting distribution; third party bond depository services; bank derivatives transfer; b-share transfer; bankfutures transfer; standard warehouse warrant pledged financing; institutional investment consulting, wealth management, and insurance services; and clearing and settlement services for future markets. The company was founded in 1908 and is headquartered in Shanghai, the People’s Republic of China.