Head to Head Analysis: Amadeus IT Group (AMADY) vs. The Competition

Amadeus IT Group (OTCMKTS:AMADY) is one of 273 public companies in the “IT Services” industry, but how does it weigh in compared to its competitors? We will compare Amadeus IT Group to related companies based on the strength of its valuation, institutional ownership, analyst recommendations, earnings, dividends, risk and profitability.

Analyst Recommendations

This is a summary of recent ratings and target prices for Amadeus IT Group and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amadeus IT Group	2	1	4	0	2.29
Amadeus IT Group Competitors	1982	5641	9413	345	2.47

As a group, “IT Services” companies have a potential upside of 24.20%. Given Amadeus IT Group’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Amadeus IT Group has less favorable growth aspects than its competitors.

Risk & Volatility

Amadeus IT Group has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Amadeus IT Group’s competitors have a beta of 2.13, indicating that their average stock price is 113% more volatile than the S&P 500.

Profitability

This table compares Amadeus IT Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amadeus IT Group	19.86%	29.84%	12.46%
Amadeus IT Group Competitors	-189.50%	-36.20%	-8.50%

Valuation & Earnings

This table compares Amadeus IT Group and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Amadeus IT Group	$7.37 billion	$1.51 billion	17.93
Amadeus IT Group Competitors	$3.31 billion	$226.41 million	-26.81

Amadeus IT Group has higher revenue and earnings than its competitors. Amadeus IT Group is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Amadeus IT Group pays an annual dividend of $1.72 per share and has a dividend yield of 2.7%. Amadeus IT Group pays out 48.7% of its earnings in the form of a dividend. As a group, “IT Services” companies pay a dividend yield of 2.3% and pay out 71.3% of their earnings in the form of a dividend. Amadeus IT Group is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

36.7% of shares of all “IT Services” companies are held by institutional investors. 20.4% of shares of all “IT Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Amadeus IT Group beats its competitors on 9 of the 15 factors compared.

About Amadeus IT Group

Amadeus IT Group, S.A., together with its subsidiaries, operates as a transaction processor for the travel and tourism industry worldwide. The company operates through three segments: Air Distribution, Air IT Solutions, and Hospitality & Other Solutions. The company acts as an international network providing real-time search, pricing, booking, and ticketing services, and other processing solutions through Amadeus GDS, Altéa PSS, and New Skies platforms. It also offers travel providers a portfolio of technology solutions, which automate certain mission-critical business processes, such as reservations, inventory management, and departure control. In addition, the company is involved in the provision of software development and definition, software distribution, regional support, data processing, intermediation, computer consulting, installation of industrial machinery and equipment, consultancy and technology development services for payments, and information technology services; financial activities; and e-commerce business. It serves providers of travel products and services, such as airlines, airports, hotels, tour operators, insurance companies, land and sea transport companies, travel sellers and brokers, and travel buyers. The company was formerly known as Amadeus IT Holding, S.A. and changed its name to Amadeus IT Group, S.A. in August 2016. Amadeus IT Group, S.A. was founded in 1987 and is headquartered in Madrid, Spain.