Air China (OTCMKTS:AIRYY – Get Free Report) and Air France-KLM (OTCMKTS:AFLYY – Get Free Report) are both transportation companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Volatility and Risk
Air China has a beta of -0.14, meaning that its share price is 114% less volatile than the S&P 500. Comparatively, Air France-KLM has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.
Institutional & Insider Ownership
0.9% of Air France-KLM shares are owned by institutional investors. 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.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Air China | -1.05% | -4.56% | -0.52% |
| Air France-KLM | 5.00% | 100.70% | 4.33% |
Earnings and Valuation
This table compares Air China and Air France-KLM”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Air China | $23.86 billion | 0.44 | -$248.73 million | ($0.30) | -40.08 |
| Air France-KLM | $28.08 billion | 0.10 | $1.80 billion | $0.66 | 1.59 |
Air France-KLM has higher revenue and earnings than Air China. Air China is trading at a lower price-to-earnings ratio than Air France-KLM, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for Air China and Air France-KLM, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Air China | 1 | 0 | 0 | 0 | 1.00 |
| Air France-KLM | 0 | 5 | 2 | 1 | 2.50 |
Summary
Air France-KLM beats Air China on 12 of the 13 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 Air France-KLM
Air France-KLM SA, together with its subsidiaries, provides passenger and cargo transportation services and aeronautical maintenance in Metropolitan France, Benelux, rest of Europe, and internationally. The company operates through three segments: Airframe maintenance, Engine Maintenance, and Component Support. It offers airframe maintenance, electronic, mechanical, pneumatic, hydraulic, and other services. The company was founded in 1919 and is headquartered in Paris, France.
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