Air China (OTCMKTS:AIRYY – Get Free Report) and Corporacion America Airports (NYSE:CAAP – Get Free Report) are both transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.
Volatility and Risk
Air China has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500. Comparatively, Corporacion America Airports has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.
Institutional & Insider Ownership
13.0% of Corporacion America Airports shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Air China | 0 | 0 | 0 | 0 | 0.00 |
| Corporacion America Airports | 0 | 0 | 3 | 0 | 3.00 |
Corporacion America Airports has a consensus price target of $22.53, suggesting a potential upside of 13.18%. Given Corporacion America Airports’ stronger consensus rating and higher possible upside, analysts clearly believe Corporacion America Airports is more favorable than Air China.
Profitability
This table compares Air China and Corporacion America Airports’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Air China | -0.33% | -1.44% | -0.16% |
| Corporacion America Airports | 7.84% | 9.33% | 3.31% |
Valuation & Earnings
This table compares Air China and Corporacion America Airports”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Air China | $23.19 billion | 0.48 | -$32.35 million | ($0.07) | -191.43 |
| Corporacion America Airports | $1.84 billion | 1.76 | $282.67 million | $0.86 | 23.15 |
Corporacion America Airports has lower revenue, but higher earnings than Air China. Air China is trading at a lower price-to-earnings ratio than Corporacion America Airports, indicating that it is currently the more affordable of the two stocks.
Summary
Corporacion America Airports beats Air China on 12 of the 13 factors compared between the two stocks.
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.
About Corporacion America Airports
Corporación América Airports S.A., through its subsidiaries, acquires, develops, and operates airport concessions. It operates 52 airports in Latin America, Europe, and Eurasia. The company was formerly known as A.C.I. Airports International S.à r.l. and changed its name to Corporación América Airports S.A. in September 2017. The company was founded in 1998 and is based in Luxembourg City, Luxembourg. Corporación América Airports S.A. is a subsidiary of A.C.I. Airports S.à r.l.
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