Air China (AIRYY) versus Its Peers Head to Head Review

Air China (OTCMKTS:AIRYY) is one of 78 public companies in the “Passenger Airlines” industry, but how does it contrast to its competitors? We will compare Air China to similar businesses based on the strength of its profitability, institutional ownership, dividends, risk, valuation, analyst recommendations and earnings.

Insider & Institutional Ownership

42.0% of shares of all “Passenger Airlines” companies are owned by institutional investors. 10.5% of shares of all “Passenger Airlines” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Air China has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500. Comparatively, Air China’s competitors have a beta of 18.44, suggesting that their average share price is 1,744% more volatile than the S&P 500.

Profitability

This table compares Air China and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Air China	-3.02%	-14.97%	-1.71%
Air China Competitors	-8.88%	4.73%	1.10%

Analyst Recommendations

This is a summary of recent recommendations for Air China and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air China	0	1	0	0	2.00
Air China Competitors	1527	4066	6689	356	2.46

As a group, “Passenger Airlines” companies have a potential upside of 6.59%. Given Air China’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Air China has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Air China and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Air China	$23.86 billion	-$248.70 million	-10.55
Air China Competitors	$14.59 billion	$637.69 million	19.52

Air China has higher revenue, but lower earnings than its competitors. Air China is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Air China competitors beat Air China on 10 of the 12 factors compared.

About Air China

Air China Limited is a Chinese airline that provides scheduled passenger and cargo transportation, along with related airline services. Headquartered in Beijing, it serves destinations across China and operates international routes connecting the country with markets in Asia, Europe, North America and other regions. The company was established in 1988 and is one of China’s principal flag carriers. Air China is a member of the Star Alliance, a global airline network whose members coordinate routes and passenger services.