Amadeus IT Group (AMADY) and Its Rivals Head-To-Head Contrast

Amadeus IT Group (OTCMKTS:AMADY) is one of 271 publicly-traded companies in the “IT Services” industry, but how does it weigh in compared to its rivals? We will compare Amadeus IT Group to similar companies based on the strength of its valuation, profitability, institutional ownership, risk, dividends, analyst recommendations and earnings.

Dividends

Amadeus IT Group pays an annual dividend of $1.72 per share and has a dividend yield of 2.6%. Amadeus IT Group pays out 48.7% of its earnings in the form of a dividend. As a group, “IT Services” companies pay a dividend yield of 2.3% and pay out 71.1% of their earnings in the form of a dividend. Amadeus IT Group is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations for Amadeus IT Group and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amadeus IT Group	2	1	4	0	2.29
Amadeus IT Group Competitors	1986	5635	9426	342	2.47

As a group, “IT Services” companies have a potential upside of 24.48%. Given Amadeus IT Group’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Amadeus IT Group has less favorable growth aspects than its rivals.

Volatility and Risk

Amadeus IT Group has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Amadeus IT Group’s rivals have a beta of 2.15, indicating that their average share price is 115% more volatile than the S&P 500.

Earnings & Valuation

This table compares Amadeus IT Group and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Amadeus IT Group	$7.37 billion	$1.51 billion	18.55
Amadeus IT Group Competitors	$3.24 billion	$227.67 million	-31.40

Amadeus IT Group has higher revenue and earnings than its rivals. Amadeus IT Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Amadeus IT Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amadeus IT Group	19.86%	29.84%	12.46%
Amadeus IT Group Competitors	-191.23%	-32.14%	-8.65%

Insider and Institutional Ownership

36.7% of shares of all “IT Services” companies are owned by institutional investors. 20.5% of shares of all “IT Services” companies are owned by insiders. 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.

Summary

Amadeus IT Group beats its rivals on 9 of the 15 factors compared.

Amadeus IT Group Company Profile

Amadeus IT Group, S.A., together with its subsidiaries, operates as a transaction processor for the travel and tourism industry worldwide. The company operates through three segments: Air Distribution, Air IT Solutions, and Hospitality & Other Solutions. The company acts as an international network providing real-time search, pricing, booking, and ticketing services, and other processing solutions through Amadeus GDS, Altéa PSS, and New Skies platforms. It also offers travel providers a portfolio of technology solutions, which automate certain mission-critical business processes, such as reservations, inventory management, and departure control. In addition, the company is involved in the provision of software development and definition, software distribution, regional support, data processing, intermediation, computer consulting, installation of industrial machinery and equipment, consultancy and technology development services for payments, and information technology services; financial activities; and e-commerce business. It serves providers of travel products and services, such as airlines, airports, hotels, tour operators, insurance companies, land and sea transport companies, travel sellers and brokers, and travel buyers. The company was formerly known as Amadeus IT Holding, S.A. and changed its name to Amadeus IT Group, S.A. in August 2016. Amadeus IT Group, S.A. was founded in 1987 and is headquartered in Madrid, Spain.