CATHAY Pac AIRW/S (NYSE: CEA) and China Eastern Airlines Corp. Ltd. ADR Class H (NYSE:CEA) are both mid-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.
CATHAY Pac AIRW/S pays an annual dividend of $0.06 per share and has a dividend yield of 0.8%. China Eastern Airlines Corp. Ltd. ADR Class H pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. CATHAY Pac AIRW/S pays out -28.6% of its earnings in the form of a dividend. China Eastern Airlines Corp. Ltd. ADR Class H pays out 11.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Institutional & Insider Ownership
0.5% of China Eastern Airlines Corp. Ltd. ADR Class H shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares CATHAY Pac AIRW/S and China Eastern Airlines Corp. Ltd. ADR Class H’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CATHAY Pac AIRW/S||N/A||N/A||N/A|
|China Eastern Airlines Corp. Ltd. ADR Class H||5.23%||9.49%||2.44%|
This is a summary of recent ratings and price targets for CATHAY Pac AIRW/S and China Eastern Airlines Corp. Ltd. ADR Class H, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CATHAY Pac AIRW/S||0||0||1||0||3.00|
|China Eastern Airlines Corp. Ltd. ADR Class H||0||3||1||0||2.25|
Risk & Volatility
CATHAY Pac AIRW/S has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, China Eastern Airlines Corp. Ltd. ADR Class H has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500.
Valuation and Earnings
This table compares CATHAY Pac AIRW/S and China Eastern Airlines Corp. Ltd. ADR Class H’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CATHAY Pac AIRW/S||$12.48 billion||0.48||-$161.52 million||($0.21)||-36.57|
|China Eastern Airlines Corp. Ltd. ADR Class H||$15.17 billion||0.60||$938.61 million||$3.26||9.63|
China Eastern Airlines Corp. Ltd. ADR Class H has higher revenue and earnings than CATHAY Pac AIRW/S. CATHAY Pac AIRW/S is trading at a lower price-to-earnings ratio than China Eastern Airlines Corp. Ltd. ADR Class H, indicating that it is currently the more affordable of the two stocks.
China Eastern Airlines Corp. Ltd. ADR Class H beats CATHAY Pac AIRW/S on 11 of the 13 factors compared between the two stocks.
CATHAY Pac AIRW/S Company Profile
Cathay Pacific Airways Limited, together with its subsidiaries, operates as an airline that provides scheduled passenger and cargo services to approximately 200 destinations in Asia, North America, Australia, Europe, and Africa. It operates in two segments, Airline Business and Non-Airline Business. The company conducts airline operations principally to and from Hong Kong. It also offers airline catering, ground handling, aircraft ramp handling, aircraft engineering, property investment, financial, computer network for interchange of air cargo related information, information processing, laundry and dry cleaning, and food processing and catering services, as well as provides travel reward programs. In addition, the company operates as a travel tour operator and as an aircraft leasing facilitator; and cargo terminals. It operates a fleet of approximately 200 aircraft. The company was founded in 1946 and is headquartered in Lantau, Hong Kong.
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.
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