Financial Analysis: Air T (NASDAQ:AIRT) & Tianci International (NASDAQ:CIIT)

Air T (NASDAQ:AIRT) and Tianci International (NASDAQ:CIIT) are both small-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Air T and Tianci International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Air T	17.17%	176.42%	17.67%
Tianci International	-14.73%	-76.73%	-71.50%

Earnings and Valuation

This table compares Air T and Tianci International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Air T	$327.09 million	0.25	$77.98 million	$23.59	1.30
Tianci International	$9.28 million	0.24	-$2.64 million	($9.00)	-0.26

Air T has higher revenue and earnings than Tianci International. Tianci International is trading at a lower price-to-earnings ratio than Air T, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Air T and Tianci International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air T	0	1	0	0	2.00
Tianci International	1	0	0	0	1.00

Risk & Volatility

Air T has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500. Comparatively, Tianci International has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500.

Institutional & Insider Ownership

8.9% of Air T shares are held by institutional investors. 68.5% of Air T shares are held by company insiders. Comparatively, 56.5% of Tianci International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Air T beats Tianci International on 11 of the 12 factors compared between the two stocks.

About Air T

Air T, Inc., through its subsidiaries, provides overnight air cargo, ground equipment sale, and commercial jet engines and parts in the United States and internationally. The Overnight Air Cargo segment offers air express delivery services. As of March 31, 2023, this segment had 85 aircraft under the dry-lease agreements with FedEx. The Ground Equipment Sales segment manufactures, sells, and services aircraft deicers, scissor-type lifts, military and civilian decontamination units, flight-line tow tractors, glycol recovery vehicles, and other specialized equipment. This segment sells its products to passenger and cargo airlines, ground handling companies, the United States Air Force, airports, and industrial customers. The Commercial Aircraft, Engines and Parts segment offers commercial aircraft trading, leasing, and parts solutions; commercial aircraft storage, storage maintenance, and aircraft disassembly/part-out services; commercial aircraft parts sales, exchanges, procurement services, consignment programs, and overhaul and repair services; and aircraft instrumentation, avionics, and a range of electrical accessories for civilian, military transport, regional/commuter and business/commercial jet, and turboprop aircraft. This segment also provides composite aircraft structures, and repair and support services. Air T, Inc. was incorporated in 1980 and is based in Denver, North Carolina.

About Tianci International

The Company’s primary line of business is global logistics. The Company through its subsidiary, Roshing, provides global logistics services, encompassing booking and the transportation arrangement and related logistics solutions. Roshing’s customized logistics solutions are tailored to meet the diverse needs of its customers. As a logistics shipping operator, Roshing focuses on ocean freight forwarding services, including container shipping and bulk goods shipping service. For the container shipping service, Roshing charters cargo space from shipping suppliers (such as shipowners, ship carrier or non-vessel operating common carriers) and then sub-charters that cargo space to its customers (cargo owners or cargo agents). For the bulk goods shipping service, Roshing issues fixture notes to customers, and then arranges the booking of ships, and signs chartering contracts with suppliers (such as shipowners). Roshing also tailors the selection of transport options, and arranges to transport the goods from the port of loading to the port of destination, so as to complete the performance of the contract. Roshing currently does not own or operate any transportation assets. By leveraging our senior management’s expertise in the global logistics industry and adopting an asset-light strategy at the early stage, Roshing has seen a significant growth in logistics revenue since 2023. Shufang Gao, our Chief Executive Officer previously worked for a globally renowned shipping conglomerate, with over 20 years of management experience. His expertise spans shipping operation management, and logistics transportation. Leveraging this experience, he has provided the Company with the managerial framework to expand its global logistics business, as well as access to relevant customer and supplier resources in the shipping industry. Roshing’s business is primarily carried out in Hong Kong and other locations in the Asia-Pacific region, mainly in Japan, South Korea, Vietnam. Roshing’s logistics services also include the shipment of goods to African countries. Roshing also generates revenue from the sale of electronic parts, and certain business and technical consulting services, independent from its global logistics business. Our principal executive offices are located in Tsim Sha Tsui, Kowloon, Hong Kong.