Comparing International Consolidated Airlines Group (OTCMKTS:ICAGY) & American Airlines Group (NASDAQ:AAL)

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

Valuation and Earnings

This table compares International Consolidated Airlines Group and American Airlines Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Consolidated Airlines Group	$37.57 billion	0.72	$3.78 billion	$2.69	4.59
American Airlines Group	$54.63 billion	0.17	$111.00 million	($0.73)	-19.33

International Consolidated Airlines Group has higher earnings, but lower revenue than American Airlines Group. American Airlines Group 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
International Consolidated Airlines Group	9.21%	79.81%	14.56%
American Airlines Group	-0.79%	-9.11%	-0.38%

Volatility & Risk

International Consolidated Airlines Group has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500. Comparatively, American Airlines Group has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for International Consolidated Airlines Group and American Airlines Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Consolidated Airlines Group	1	0	1	0	2.00
American Airlines Group	2	10	9	0	2.33

American Airlines Group has a consensus target price of $17.28, indicating a potential upside of 22.44%. Given American Airlines Group’s stronger consensus rating and higher possible upside, analysts plainly believe American Airlines Group is more favorable than International Consolidated Airlines Group.

Insider & Institutional Ownership

0.0% of International Consolidated Airlines Group shares are held by institutional investors. Comparatively, 52.4% of American Airlines Group shares are held by institutional investors. 0.7% of American Airlines Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

International Consolidated Airlines Group beats American Airlines Group on 8 of the 14 factors compared between the two stocks.

About International Consolidated Airlines Group

International Consolidated Airlines Group (IAG) is an airline holding company whose principal activities include passenger and cargo air transportation. Its airline brands include British Airways, Iberia, Aer Lingus, Vueling and LEVEL, which serve customers through scheduled flights and related travel services. Formed in 2011 through the merger of British Airways and Iberia, IAG is registered in Spain and has major operations in the United Kingdom, Spain and Ireland. Its airlines connect destinations across Europe and serve routes to regions including North America, Latin America, Africa and Asia.

About American Airlines Group

American Airlines Group Inc. is a holding company whose principal business is operating a global airline through American Airlines and its regional partners. The company provides scheduled passenger and cargo air transportation, along with related services such as loyalty programs and travel offerings. Its network connects destinations across the United States and serves markets in the Caribbean, Latin America, Europe and the Asia-Pacific region. Regional flights are operated under the American Eagle brand by affiliated carriers.