Air China (AIRYY) & Its Competitors Financial Analysis

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

Risk and Volatility

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

Valuation and Earnings

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	$15.21 billion	$637.69 million	18.88

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.

Institutional & Insider Ownership

43.2% of shares of all “Passenger Airlines” companies are held by institutional investors. 11.2% of shares of all “Passenger Airlines” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

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%	4.79%	1.10%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Air China and its competitors, as reported 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	1526	4063	6683	354	2.46

As a group, “Passenger Airlines” companies have a potential upside of 8.99%. Given Air China’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Air China has less favorable growth aspects than its competitors.

Summary

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

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.