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

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

Profitability

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

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

Analyst Recommendations

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

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

Dividends

Amadeus IT Group pays an annual dividend of $1.30 per share and has a dividend yield of 1.8%. Air China pays an annual dividend of $0.09 per share and has a dividend yield of 0.8%. 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.

Risk and Volatility

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

Valuation & Earnings

This table compares Amadeus IT Group and Air China”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amadeus IT Group	$5.89 billion	5.45	$1.14 billion	N/A	N/A
Air China	$21.01 billion	0.45	-$146.93 million	$0.03	376.67

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

Summary

Amadeus IT Group beats Air China on 8 of the 10 factors compared between the two stocks.

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.

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.