Critical Contrast: Air China (OTCMKTS:AIRYY) versus Norwegian Air Shuttle ASA (OTCMKTS:NWARF)
by Kim Johansen · The Markets DailyNorwegian Air Shuttle ASA (OTCMKTS:NWARF – Get Free Report) and Air China (OTCMKTS:AIRYY – Get Free Report) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.
Institutional and Insider Ownership
31.8% of Norwegian Air Shuttle ASA shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Norwegian Air Shuttle ASA and Air China’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Norwegian Air Shuttle ASA | N/A | N/A | N/A |
| Air China | 1.12% | 5.01% | 0.58% |
Analyst Ratings
This is a summary of current ratings and target prices for Norwegian Air Shuttle ASA and Air China, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Norwegian Air Shuttle ASA | 0 | 1 | 1 | 0 | 2.50 |
| Air China | 0 | 1 | 0 | 0 | 2.00 |
Earnings & Valuation
This table compares Norwegian Air Shuttle ASA and Air China”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Norwegian Air Shuttle ASA | N/A | N/A | N/A | ($8.11) | -0.16 |
| Air China | $23.86 billion | 0.35 | -$248.70 million | $0.32 | 29.91 |
Norwegian Air Shuttle ASA has higher earnings, but lower revenue than Air China. Norwegian Air Shuttle ASA is trading at a lower price-to-earnings ratio than Air China, indicating that it is currently the more affordable of the two stocks.
Summary
Air China beats Norwegian Air Shuttle ASA on 6 of the 9 factors compared between the two stocks.
About Norwegian Air Shuttle ASA
Norwegian Air Shuttle ASA, together with its subsidiaries, provides air travel services in Norway and internationally. It is also involved in aircraft financing, leasing, and ownership activities; and cargo activities. It operates a fleet of 87 aircrafts. Norwegian Air Shuttle ASA was founded in 1993 and is headquartered in Fornebu, Norway.
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.