Qantas Airways (OTCMKTS:QUBSF) versus American Airlines Group (NASDAQ:AAL) Head-To-Head Contrast

American Airlines Group (NASDAQ:AAL) and Qantas Airways (OTCMKTS:QUBSF) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Profitability

This table compares American Airlines Group and Qantas Airways’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Airlines Group	-0.56%	-9.11%	-0.27%
Qantas Airways	N/A	N/A	N/A

Earnings & Valuation

This table compares American Airlines Group and Qantas Airways”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Airlines Group	$54.63 billion	0.17	$111.00 million	($0.49)	-27.84
Qantas Airways	N/A	N/A	N/A	($1.28)	-5.35

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for American Airlines Group and Qantas Airways, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Airlines Group	2	11	8	0	2.29
Qantas Airways	0	0	0	0	0.00

American Airlines Group currently has a consensus price target of $18.86, suggesting a potential upside of 38.28%. Given American Airlines Group’s stronger consensus rating and higher probable upside, research analysts plainly believe American Airlines Group is more favorable than Qantas Airways.

Institutional and Insider Ownership

52.4% of American Airlines Group shares are owned by institutional investors. Comparatively, 23.1% of Qantas Airways shares are owned by institutional investors. 0.7% of American Airlines Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

American Airlines Group beats Qantas Airways on 7 of the 11 factors compared between the two stocks.

About American Airlines Group

American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. The company provides scheduled air transportation services for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C., as well as through partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo. It operates a mainline fleet of 965 aircraft. The company was formerly known as AMR Corporation and changed its name to American Airlines Group Inc. in December 2013. American Airlines Group Inc. was founded in 1926 and is headquartered in Fort Worth, Texas.

About Qantas Airways

Qantas Airways Limited provides air transportation services in Australia and internationally. The company operates through Qantas Domestic, Qantas International, Jetstar Group, and Qantas Loyalty segments. It offers passenger flying, and air cargo and express freight services; and customer loyalty recognition programs. The company operates a fleet of aircraft under the Qantas and Jetstar brands. Qantas Airways Limited was founded in 1920 and is based in Mascot, Australia.