Financial Survey: Air Canada (ACDVF) and Its Rivals

Air Canada (OTCMKTS:ACDVF) is one of 78 public companies in the “Passenger Airlines” industry, but how does it contrast to its peers? We will compare Air Canada to related companies based on the strength of its profitability, dividends, analyst recommendations, valuation, institutional ownership, risk and earnings.

Risk and Volatility

Air Canada has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Air Canada’s peers have a beta of 17.44, indicating that their average share price is 1,644% more volatile than the S&P 500.

Profitability

This table compares Air Canada and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Air Canada	1.22%	18.75%	1.53%
Air Canada Competitors	-8.87%	5.38%	1.20%

Analyst Ratings

This is a summary of current ratings and price targets for Air Canada and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air Canada	1	3	6	1	2.64
Air Canada Competitors	1527	4064	6685	356	2.46

As a group, “Passenger Airlines” companies have a potential upside of 3.54%. Given Air Canada’s peers higher possible upside, analysts plainly believe Air Canada has less favorable growth aspects than its peers.

Insider and Institutional Ownership

43.2% of shares of all “Passenger Airlines” companies are owned by institutional investors. 11.2% of shares of all “Passenger Airlines” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Air Canada and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Air Canada	$16.01 billion	$460.91 million	22.48
Air Canada Competitors	$14.62 billion	$637.69 million	20.04

Air Canada has higher revenue, but lower earnings than its peers. Air Canada is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Air Canada beats its peers on 8 of the 13 factors compared.

About Air Canada

Air Canada is a Canadian airline that provides scheduled passenger and cargo services. Its operations include domestic and international flights, with service connecting cities across Canada to destinations in the Americas, Europe, Asia and other regions. The company is headquartered in Montreal and is a member of the Star Alliance network. Founded in 1937 as Trans-Canada Air Lines, the company adopted the Air Canada name in 1965. Its services also include regional flights operated under the Air Canada Express brand, leisure travel through Air Canada Vacations, and cargo transportation through Air Canada Cargo.