Reviewing Cathay Pacific Airways (OTCMKTS:CPCAY) & Air China (OTCMKTS:AIRYY)

Air China (OTCMKTS:AIRYY) and Cathay Pacific Airways (OTCMKTS:CPCAY) are both large-cap transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.

Earnings & Valuation

This table compares Air China and Cathay Pacific Airways”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Air China	$23.19 billion	0.59	-$32.35 million	$0.02	829.28
Cathay Pacific Airways	$13.38 billion	0.78	$1.23 billion	N/A	N/A

Cathay Pacific Airways has lower revenue, but higher earnings than Air China.

Dividends

Air China pays an annual dividend of $0.09 per share and has a dividend yield of 0.5%. Cathay Pacific Airways pays an annual dividend of $0.21 per share and has a dividend yield of 2.7%. Air China pays out 450.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

Air China has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, Cathay Pacific Airways has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.

Profitability

This table compares Air China and Cathay Pacific Airways’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Air China	0.47%	2.03%	0.23%
Cathay Pacific Airways	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations and price targets for Air China and Cathay Pacific Airways, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air China	0	0	0	0	0.00
Cathay Pacific Airways	0	1	0	0	2.00

Summary

Cathay Pacific Airways beats Air China on 6 of the 10 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 Cathay Pacific Airways

Cathay Pacific Airways Limited, together with its subsidiaries, offers international passenger and air cargo transportation services. The company conducts airline operations principally to and from Hong Kong. It also engages in the property investment and travel reward program; operates as a travel tour operator; and provision of financial, aircraft acquisition facilitation, airline catering, information processing, aircraft ramp handling, laundry and dry cleaning, ground handling, and cargo terminal services. The company operates in the Americas, Europe, Southeast Asia, Southwest Pacific, North Asia, South Asia, the Middle East, and Africa. As of December 31, 2023, it operates 230 aircraft. Cathay Pacific Airways Limited was founded in 1946 and is headquartered in Lantau Island, Hong Kong.