Head to Head Survey: Japan Airlines (OTCMKTS:JAPSY) and International Consolidated Airlines Group (OTCMKTS:ICAGY)

Japan Airlines (OTCMKTS:JAPSY) and International Consolidated Airlines Group (OTCMKTS:ICAGY) are both transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Profitability

This table compares Japan Airlines and International Consolidated Airlines Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Japan Airlines	6.04%	11.41%	4.01%
International Consolidated Airlines Group	8.98%	115.72%	14.69%

Earnings & Valuation

This table compares Japan Airlines and International Consolidated Airlines Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Japan Airlines	$12.11 billion	0.70	$706.45 million	$0.81	11.98
International Consolidated Airlines Group	$34.74 billion	0.66	$2.96 billion	$2.84	3.45

International Consolidated Airlines Group has higher revenue and earnings than Japan Airlines. International Consolidated Airlines Group is trading at a lower price-to-earnings ratio than Japan Airlines, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

0.0% of International Consolidated Airlines Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Japan Airlines pays an annual dividend of $0.21 per share and has a dividend yield of 2.2%. International Consolidated Airlines Group pays an annual dividend of $0.11 per share and has a dividend yield of 1.1%. Japan Airlines pays out 25.9% of its earnings in the form of a dividend. International Consolidated Airlines Group pays out 3.9% 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Japan Airlines and International Consolidated Airlines Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Japan Airlines	0	0	0	0	0.00
International Consolidated Airlines Group	1	1	2	0	2.25

Volatility & Risk

Japan Airlines has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, International Consolidated Airlines Group has a beta of 2.12, indicating that its stock price is 112% more volatile than the S&P 500.

Summary

International Consolidated Airlines Group beats Japan Airlines on 11 of the 14 factors compared between the two stocks.

About Japan Airlines

Japan Airlines Co., Ltd., together with its subsidiaries, provides scheduled and non-scheduled air transport services in Japan, Asia, Oceania, North America, and Europe. The company operates through Air Transportation and Other segments. It offers passenger, ground handling, cargo and mail handling, and maintenance services. The company is also involved in the aerial work and other related business; airport peripheral business; and sale of travel package tours. As of March 31, 2023, it operated a fleet of 224 aircraft. The company was formerly known as Japan Airlines International Co., Ltd. and changed its name to Japan Airlines Co., Ltd. in April 2011. The company was founded in 1951 and is headquartered in Tokyo, Japan.

About International Consolidated Airlines Group

International Consolidated Airlines Group S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the United Kingdom, Spain, the United States, and rest of the world. It also provides aircraft leasing, aircraft maintenance, tour operation, air freight operations, call centre, ground handling, trustee, retail, IT, finance, procurement, storage and custody, aircraft technical assistance, human resources support, and airport infrastructure development services; and manages airline loyalty programmes. The company operates under the British Airways, Iberia, Vueling, Aer Lingus, and LEVEL brands. It operates a fleet of 582 aircrafts. The company was incorporated in 2009 and is headquartered in Harmondsworth, United Kingdom.