China Eastern Airlines (CEA) & easyJet (EJTTF) Critical Analysis

China Eastern Airlines (OTCMKTS: EJTTF) and easyJet (OTCMKTS:EJTTF) are both mid-cap transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Dividends

China Eastern Airlines pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. easyJet does not pay a dividend. China Eastern Airlines pays out 11.0% of its earnings in the form of a dividend.

Volatility and Risk

China Eastern Airlines has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, easyJet has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.

Earnings and Valuation

This table compares China Eastern Airlines and easyJet’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Eastern Airlines $15.17 billion 0.61 $938.61 million $3.26 9.80
easyJet $6.40 billion 1.36 $386.55 million N/A N/A

China Eastern Airlines has higher revenue and earnings than easyJet.

Analyst Ratings

This is a summary of recent ratings and recommmendations for China Eastern Airlines and easyJet, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Eastern Airlines 0 2 2 0 2.50
easyJet 0 1 1 0 2.50

Profitability

This table compares China Eastern Airlines and easyJet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Eastern Airlines 5.23% 9.49% 2.44%
easyJet N/A N/A N/A

Institutional & Insider Ownership

0.4% of China Eastern Airlines 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 beats easyJet on 9 of the 11 factors compared between the two stocks.

About China Eastern Airlines

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.

About easyJet

easyJet plc, together with its subsidiaries, operates as an airline carrier primarily in Europe. As of September 30, 2017, it operated 862 routes and a fleet of 279 aircraft. The company also engages in the trading and leasing of aircrafts; and the provision of graphic design services. easyJet plc was founded in 1995 and is based in Luton, the United Kingdom.

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