China Eastern Airlines Corp. Ltd. ADR Class H (CEA) versus Avianca (AVH) Head to Head Survey

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China Eastern Airlines Corp. Ltd. ADR Class H (NYSE: AVH) and Avianca (NYSE:AVH) are both transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Analyst Recommendations

This is a summary of current ratings and recommmendations for China Eastern Airlines Corp. Ltd. ADR Class H and Avianca, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Eastern Airlines Corp. Ltd. ADR Class H 0 3 1 0 2.25
Avianca 0 1 2 0 2.67

Avianca has a consensus target price of $10.33, indicating a potential upside of 76.64%. Given Avianca’s stronger consensus rating and higher probable upside, analysts clearly believe Avianca is more favorable than China Eastern Airlines Corp. Ltd. ADR Class H.

Dividends

China Eastern Airlines Corp. Ltd. ADR Class H pays an annual dividend of $0.36 per share and has a dividend yield of 1.3%. Avianca pays an annual dividend of $0.72 per share and has a dividend yield of 12.3%. China Eastern Airlines Corp. Ltd. ADR Class H pays out 11.0% of its earnings in the form of a dividend. Avianca pays out 180.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares China Eastern Airlines Corp. Ltd. ADR Class H and Avianca’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Eastern Airlines Corp. Ltd. ADR Class H $15.17 billion 0.54 $938.61 million $3.26 8.67
Avianca $4.44 billion 0.11 $82.03 million $0.40 14.63

China Eastern Airlines Corp. Ltd. ADR Class H has higher revenue and earnings than Avianca. China Eastern Airlines Corp. Ltd. ADR Class H is trading at a lower price-to-earnings ratio than Avianca, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

China Eastern Airlines Corp. Ltd. ADR Class H has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, Avianca has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Profitability

This table compares China Eastern Airlines Corp. Ltd. ADR Class H and Avianca’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Eastern Airlines Corp. Ltd. ADR Class H 5.23% 9.49% 2.44%
Avianca N/A N/A N/A

Insider and Institutional Ownership

0.4% of China Eastern Airlines Corp. Ltd. ADR Class H shares are owned by institutional investors. Comparatively, 3.3% of Avianca shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

China Eastern Airlines Corp. Ltd. ADR Class H beats Avianca on 9 of the 15 factors compared between the two stocks.

China Eastern Airlines Corp. Ltd. ADR Class H Company Profile

China Eastern Airlines Corporation Limited, together with its subsidiaries, operates in the civil aviation industry in the People's Republic of China and internationally. The company offers passenger, cargo, mail delivery, ground, cargo handling, tour operations, air catering, and other extended transportation services. It is also involved in flight training; airline maintenance and consultation; import and export, investment, leasing, and consultation; hotel services; travel and air ticketing agency and transportation; the research and development of technology and products in the field of aviation; and e-commerce platform activities. As of December 31, 2017, the company operated a fleet of 637 aircraft, including 627 passenger aircraft and 10 business aircraft. China Eastern Airlines Corporation Limited was founded in 1988 and is headquartered in Shanghai, the People's Republic of China. China Eastern Airlines Corporation Limited is a subsidiary of China Eastern Air Holding Company Limited.

Avianca Company Profile

Avianca Holdings S.A., through its subsidiaries, provides passenger and cargo air transportation services in North America, Central America, the Caribbean, Colombia, Europe, South America, and internationally. It also offers aircraft maintenance, crew training, and other airport services to other carriers, as well as travel and cargo related services to its customers. In addition, the company is involved in the ground operations for third?party airlines, and aircraft leasing activities; and operates LifeMiles, a frequent flyer program. As of December 31, 2017, it operated a fleet of 186 aircraft, including 144 jet passenger aircrafts, 30 turboprop passenger aircrafts, and 12 cargo aircrafts. The company was formerly known as AviancaTaca Holding S.A. and changed its name to Avianca Holdings S.A. in March 2013. The company was founded in 1919 and is based in Panama City, Panama. Avianca Holdings S.A. is a subsidiary of Synergy Aerospace Corp.

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