Air China (OTCMKTS:AIRYY) versus Air France-KLM (OTCMKTS:AFLYY) Critical Survey

Air China (OTCMKTS:AIRYYGet Free Report) and Air France-KLM (OTCMKTS:AFLYYGet Free Report) are both transportation companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares Air China and Air France-KLM”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Air China $23.86 billion 0.44 -$248.73 million ($0.30) -40.08
Air France-KLM $28.08 billion 0.10 $1.80 billion $0.66 1.56

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

Profitability

This table compares Air China and Air France-KLM’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Air China -1.05% -4.56% -0.52%
Air France-KLM 5.00% 100.70% 4.33%

Insider & Institutional Ownership

0.9% of Air France-KLM shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Air China has a beta of -0.14, indicating that its stock price is 114% less volatile than the S&P 500. Comparatively, Air France-KLM has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Air China and Air France-KLM, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Air China 0 0 0 0 0.00
Air France-KLM 0 5 2 1 2.50

Summary

Air France-KLM beats Air China on 12 of the 13 factors compared between the two stocks.

About Air China

(Get Free Report)

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 Air France-KLM

(Get Free Report)

Air France-KLM SA, together with its subsidiaries, provides passenger and cargo transportation services and aeronautical maintenance in Metropolitan France, Benelux, rest of Europe, and internationally. The company operates through three segments: Airframe maintenance, Engine Maintenance, and Component Support. It offers airframe maintenance, electronic, mechanical, pneumatic, hydraulic, and other services. The company was founded in 1919 and is headquartered in Paris, France.

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