Head to Head Analysis: Cathay Pacific Airways (OTCMKTS:CPCAY) and Japan Airlines (OTCMKTS:JAPSY)

Cathay Pacific Airways (OTCMKTS:CPCAY) and Japan Airlines (OTCMKTS:JAPSY) are both transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Cathay Pacific Airways and Japan Airlines, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cathay Pacific Airways	1	1	0	1	2.33
Japan Airlines	1	0	0	1	2.50

Dividends

Cathay Pacific Airways pays an annual dividend of $0.22 per share and has a dividend yield of 2.8%. Japan Airlines pays an annual dividend of $0.17 per share and has a dividend yield of 2.1%. Japan Airlines pays out 17.3% of its earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cathay Pacific Airways	N/A	N/A	N/A
Japan Airlines	6.57%	10.93%	4.35%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cathay Pacific Airways	$14.98 billion	0.70	$1.39 billion	N/A	N/A
Japan Airlines	$12.11 billion	0.59	$706.45 million	$0.98	8.36

Cathay Pacific Airways has higher revenue and earnings than Japan Airlines.

Risk & Volatility

Cathay Pacific Airways has a beta of -0.02, suggesting that its stock price is 102% less volatile than the S&P 500. Comparatively, Japan Airlines has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.

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.

About Japan Airlines

Japan Airlines Co., Ltd., together with its subsidiaries, provides scheduled and non-scheduled air transport services in Japan, Asia, Oceania, North America, and Europe. The company operates through Air Transportation and Other segments. It offers passenger, ground handling, cargo and mail handling, and maintenance services. The company is also involved in the aerial work and other related business; airport peripheral business; and sale of travel package tours. As of March 31, 2023, it operated a fleet of 224 aircraft. The company was formerly known as Japan Airlines International Co., Ltd. and changed its name to Japan Airlines Co., Ltd. in April 2011. The company was founded in 1951 and is headquartered in Tokyo, Japan.