American Airlines Group (AAL)vsAllegiant Travel Company (ALGT)
AAL
American Airlines Group
$13.50
+1.50%
INDUSTRIALS · Cap: $9.91B
ALGT
Allegiant Travel Company
$84.12
-0.41%
INDUSTRIALS · Cap: $2.46B
Smart Verdict
WallStSmart Research — data-driven comparison
American Airlines Group generates 2021% more annual revenue ($55.99B vs $2.64B). AAL leads profitability with a 0.4% profit margin vs -1.3%. AAL appears more attractively valued with a PEG of 0.83. ALGT earns a higher WallStSmart Score of 59/100 (C).
AAL
Hold47
out of 100
Grade: D+
ALGT
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+30.6%
Fair Value
$20.69
Current Price
$13.50
$7.19 discount
Margin of Safety
+17.3%
Fair Value
$132.18
Current Price
$84.12
$48.06 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Growing faster than its price suggests
Generating 3.4B in free cash flow
Reasonable price relative to book value
Growing faster than its price suggests
Earnings expanding 32.6% YoY
Areas to Watch
ROE of 0.0% — below average capital efficiency
0.4% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
4.8% revenue growth
Elevated debt levels
ROE of -3.1% — below average capital efficiency
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : AAL
The strongest argument for AAL centers on Debt/Equity, PEG Ratio, Free Cash Flow. Revenue growth of 10.8% demonstrates continued momentum. PEG of 0.83 suggests the stock is reasonably priced for its growth.
Bull Case : ALGT
The strongest argument for ALGT centers on Price/Book, PEG Ratio, EPS Growth. PEG of 0.85 suggests the stock is reasonably priced for its growth.
Bear Case : AAL
The primary concerns for AAL are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 48.3x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.
Bear Case : ALGT
The primary concerns for ALGT are Revenue Growth, Debt/Equity, Return on Equity. Debt-to-equity of 1.69 is elevated, increasing financial risk.
Key Dynamics to Monitor
AAL profiles as a value stock while ALGT is a turnaround play — different risk/reward profiles.
ALGT carries more volatility with a beta of 1.56 — expect wider price swings.
AAL is growing revenue faster at 10.8% — sustainability is the question.
AAL generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
ALGT scores higher overall (59/100 vs 47/100). AAL offers better value entry with a 30.6% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
American Airlines Group
INDUSTRIALS · AIRLINES · USA
American Airlines Group Inc. is an American publicly traded airline holding company headquartered in Fort Worth, Texas.
Allegiant Travel Company
INDUSTRIALS · AIRLINES · USA
Allegiant Travel Company, a leisure travel company, provides travel products and services to residents of underserved cities in the United States. The company is headquartered in Las Vegas, Nevada.
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