Air China (OTCMKTS:AIRYY) and Amadeus IT Group (OTCMKTS:AMADY) Critical Survey

Air China (OTCMKTS:AIRYY) and Amadeus IT Group (OTCMKTS:AMADY) are both transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Risk & Volatility

Air China has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, Amadeus IT Group has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Air China and Amadeus IT Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air China	0	0	0	0	N/A
Amadeus IT Group	0	0	0	0	N/A

Dividends

Air China pays an annual dividend of $0.09 per share and has a dividend yield of 0.8%. Amadeus IT Group pays an annual dividend of $1.30 per share and has a dividend yield of 1.8%. Air China pays out 300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares Air China and Amadeus IT Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Air China	$21.01 billion	0.45	-$146.93 million	$0.03	375.67
Amadeus IT Group	$5.89 billion	5.41	$1.14 billion	N/A	N/A

Amadeus IT Group has lower revenue, but higher earnings than Air China.

Profitability

This table compares Air China and Amadeus IT Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Air China	-0.34%	-1.50%	-0.17%
Amadeus IT Group	20.02%	24.69%	10.28%

Summary

Amadeus IT Group beats Air China on 8 of the 10 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 Amadeus IT Group

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.