Head-To-Head Survey: Air China (OTCMKTS:AIRYY) versus Alaska Air Group (NYSE:ALK)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alaska Air Group	0.70%	7.22%	1.46%
Air China	-1.05%	-4.56%	-0.52%

Volatility & Risk

Alaska Air Group has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Air China has a beta of -0.14, meaning that its share price is 114% less volatile than the S&P 500.

Insider & Institutional Ownership

81.9% of Alaska Air Group shares are owned by institutional investors. 1.0% of Alaska Air Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Alaska Air Group and Air China”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alaska Air Group	$14.24 billion	0.30	$100.00 million	$0.87	42.89
Air China	$23.86 billion	0.44	-$248.73 million	($0.30)	-40.08

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

Analyst Ratings

This is a summary of recent ratings and price targets for Alaska Air Group and Air China, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alaska Air Group	0	2	10	1	2.92
Air China	1	0	0	0	1.00

Alaska Air Group currently has a consensus target price of $63.67, suggesting a potential upside of 70.62%. Given Alaska Air Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Alaska Air Group is more favorable than Air China.

Summary

Alaska Air Group beats Air China on 13 of the 15 factors compared between the two stocks.

About Alaska Air Group

Alaska Air Group, Inc., through its subsidiaries, operates airlines. It operates through three segments: Mainline, Regional, and Horizon. The company offers scheduled air transportation services on Boeing jet aircraft for passengers and cargo in the United States, and in parts of Canada, Mexico, Costa Rica, Belize, Guatemala, and the Bahamas; and for passengers across a shorter distance network within the United States, Canada, and Mexico. Alaska Air Group, Inc. was founded in 1932 and is based in Seattle, Washington.

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.