Head-To-Head Contrast: Air China (OTCMKTS:AICAF) & International Consolidated Airlines Group (OTCMKTS:ICAGY)

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

Earnings & Valuation

This table compares International Consolidated Airlines Group and Air China”s top-line 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	0.70	$3.78 billion	$3.82	3.11
Air China	N/A	N/A	N/A	$0.20	2.60

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.

Dividends

International Consolidated Airlines Group pays an annual dividend of $0.18 per share and has a dividend yield of 1.5%. Air China pays an annual dividend of $0.05 per share and has a dividend yield of 8.8%. International Consolidated Airlines Group pays out 4.7% of its earnings in the form of a dividend. Air China pays out 22.8% 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.

Analyst Recommendations

This is a summary of current ratings for International Consolidated Airlines Group and Air China, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Consolidated Airlines Group	0	1	3	0	2.75
Air China	0	0	0	0	0.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
International Consolidated Airlines Group	9.21%	129.76%	23.00%
Air China	N/A	N/A	N/A

Institutional & Insider Ownership

0.0% of International Consolidated Airlines Group shares are held by institutional investors. Comparatively, 2.3% of Air China shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

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

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.

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.