Reviewing Air China (OTCMKTS:AIRYY) and Joby Aviation (NYSE:JOBY)

Air China (OTCMKTS:AIRYY) and Joby Aviation (NYSE:JOBY) are both large-cap transportation companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations for Air China and Joby Aviation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air China	1	0	0	0	1.00
Joby Aviation	3	4	2	0	1.89

Joby Aviation has a consensus price target of $13.06, indicating a potential upside of 22.81%. Given Joby Aviation’s stronger consensus rating and higher possible upside, analysts plainly believe Joby Aviation is more favorable than Air China.

Insider and Institutional Ownership

52.8% of Joby Aviation shares are owned by institutional investors. 28.5% of Joby Aviation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Air China and Joby Aviation”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Air China	$23.86 billion	0.45	-$248.70 million	$0.32	38.13
Joby Aviation	$77.67 million	134.11	-$929.84 million	($1.15)	-9.25

Air China has higher revenue and earnings than Joby Aviation. Joby Aviation is trading at a lower price-to-earnings ratio than Air China, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Air China and Joby Aviation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Air China	1.12%	5.01%	0.58%
Joby Aviation	-1,232.62%	-60.54%	-42.52%

Volatility & Risk

Air China has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500. Comparatively, Joby Aviation has a beta of 2.61, indicating that its share price is 161% more volatile than the S&P 500.

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 Joby Aviation

Joby Aviation, Inc., a vertically integrated air mobility company, engages in building an electric vertical takeoff and landing aircraft optimized to deliver air transportation as a service. The company intends to build an aerial ridesharing service, as well as developing an application-based platform that will enable consumers to book rides. Joby Aviation, Inc. was founded in 2009 and is headquartered in Santa Cruz, California.