Comparing Amadeus IT Group (AMADY) & Its Competitors

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

Profitability

This table compares Amadeus IT Group and its competitors’ 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	-191.32%	-32.18%	-8.63%

Institutional & Insider Ownership

36.7% of shares of all “IT Services” companies are held by institutional investors. 20.4% of shares of all “IT Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Amadeus IT Group has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Amadeus IT Group’s competitors have a beta of 2.16, meaning that their average stock price is 116% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Amadeus IT Group and its competitors, as reported 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	1991	5648	9460	342	2.47

As a group, “IT Services” companies have a potential upside of 30.20%. Given Amadeus IT Group’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Amadeus IT Group has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Amadeus IT Group and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Amadeus IT Group	$7.37 billion	$1.51 billion	19.09
Amadeus IT Group Competitors	$8.86 billion	$227.67 million	-23.45

Amadeus IT Group’s competitors have higher revenue, but lower earnings than Amadeus IT Group. Amadeus IT Group is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

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 70.9% of their earnings in the form of a dividend. Amadeus IT Group is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

Amadeus IT Group beats its competitors on 8 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.