Critical Analysis: Air China (AIRYY) and Its Competitors

Profitability

This table compares Air China and its rivals’ 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%
Air China Competitors	-15,414.15%	17.92%	1.87%

Earnings & Valuation

This table compares Air China and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Air China	$23.19 billion	-$32.35 million	-191.43
Air China Competitors	$14.08 billion	$574.24 million	1.94

Air China has higher revenue, but lower earnings than its rivals. Air China is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Air China has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500. Comparatively, Air China’s rivals have a beta of 1.65, indicating that their average stock price is 65% more volatile than the S&P 500.

Institutional and Insider Ownership

52.5% of shares of all “TRANS – AIRLINE” companies are owned by institutional investors. 9.0% of shares of all “TRANS – AIRLINE” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Air China rivals beat Air China on 7 of the 9 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.