United Airlines (NASDAQ:UAL – Get Free Report) and Air China (OTCMKTS:AIRYY – Get Free Report) are both large-cap transportation companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.
Risk and Volatility
United Airlines has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Air China has a beta of -0.08, suggesting that its share price is 108% less volatile than the S&P 500.
Profitability
This table compares United Airlines and Air China’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Airlines | 5.68% | 25.13% | 4.56% |
| Air China | 0.19% | 0.79% | 0.09% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Airlines | $59.07 billion | 0.56 | $3.35 billion | $10.22 | 10.01 |
| Air China | $23.19 billion | 0.69 | -$32.35 million | $0.02 | 911.00 |
United Airlines has higher revenue and earnings than Air China. United Airlines is trading at a lower price-to-earnings ratio than Air China, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and price targets for United Airlines and Air China, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Airlines | 0 | 2 | 15 | 0 | 2.88 |
| Air China | 0 | 0 | 0 | 0 | 0.00 |
United Airlines currently has a consensus price target of $135.97, suggesting a potential upside of 32.89%. Given United Airlines’ stronger consensus rating and higher possible upside, research analysts plainly believe United Airlines is more favorable than Air China.
Institutional & Insider Ownership
69.7% of United Airlines shares are held by institutional investors. 0.7% of United Airlines shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
United Airlines beats Air China on 12 of the 14 factors compared between the two stocks.
About United Airlines
United Airlines Holdings, Inc., through its subsidiaries, provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. The company transports people and cargo through its mainline and regional fleets. It also offers catering, ground handling, flight academy, and maintenance services for third parties. The company was formerly known as United Continental Holdings, Inc. and changed its name to United Airlines Holdings, Inc. in June 2019. United Airlines Holdings, Inc. was incorporated in 1968 and is headquartered in Chicago, Illinois.
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.
Receive News & Ratings for United Airlines Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for United Airlines and related companies with MarketBeat.com's FREE daily email newsletter.
