Contrasting Air China (OTCMKTS:AICAF) & International Consolidated Airlines Group (OTCMKTS:ICAGY)

Air China (OTCMKTS:AICAF) and International Consolidated Airlines Group (OTCMKTS:ICAGY) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Profitability

This table compares Air China and International Consolidated Airlines Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Air China	N/A	N/A	N/A
International Consolidated Airlines Group	10.38%	100.80%	15.73%

Earnings and Valuation

This table compares Air China and International Consolidated Airlines Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Air China	N/A	N/A	N/A	$0.20	2.60
International Consolidated Airlines Group	$37.57 billion	0.69	$3.78 billion	$4.26	2.75

International Consolidated Airlines Group has higher revenue and earnings than Air China. Air China is trading at a lower price-to-earnings ratio than International Consolidated Airlines Group, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

2.3% of Air China shares are owned by institutional investors. Comparatively, 0.0% of International Consolidated Airlines Group shares are owned by institutional investors. 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Air China and International Consolidated Airlines Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air China	0	0	0	0	0.00
International Consolidated Airlines Group	1	1	3	0	2.40

Dividends

Air China pays an annual dividend of $0.05 per share and has a dividend yield of 8.8%. International Consolidated Airlines Group pays an annual dividend of $0.19 per share and has a dividend yield of 1.6%. Air China pays out 22.8% of its earnings in the form of a dividend. International Consolidated Airlines Group pays out 4.5% 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.

Summary

International Consolidated Airlines Group beats Air China on 9 of the 11 factors compared between the two stocks.

About Air China

Air China Limited, together with its subsidiaries, provides air passenger, air cargo, and airline-related services in Mainland China, Hong Kong, Macau, Taiwan, China, and internationally. The company operates in Airline Operations and Other Operations segments. It provides aircraft engineering and airport ground handling services. The company is also involved in the import and export trading activities; and provision of cabin, airline catering, air ticketing, human resources, aircraft overhaul and maintenance, and financial services. Air China Limited was founded in 1988 and is headquartered in Beijing, the People’s Republic of China.

About International Consolidated Airlines Group

International Consolidated Airlines Group S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the United Kingdom, Spain, the United States, and rest of the world. It also provides aircraft leasing, aircraft maintenance, tour operation, air freight operations, call centre, ground handling, trustee, retail, IT, finance, procurement, storage and custody, aircraft technical assistance, human resources support, and airport infrastructure development services; and manages airline loyalty programmes. The company operates under the British Airways, Iberia, Vueling, Aer Lingus, and LEVEL brands. It operates a fleet of 582 aircrafts. The company was incorporated in 2009 and is headquartered in Harmondsworth, United Kingdom.