American Airlines Group (AAL)vsAlaska Air Group Inc (ALK)
AAL
American Airlines Group
$13.50
+1.50%
INDUSTRIALS · Cap: $9.91B
ALK
Alaska Air Group Inc
$42.82
+0.30%
INDUSTRIALS · Cap: $5.27B
Smart Verdict
WallStSmart Research — data-driven comparison
American Airlines Group generates 289% more annual revenue ($55.99B vs $14.40B). ALK leads profitability with a 0.5% profit margin vs 0.4%. AAL appears more attractively valued with a PEG of 0.83. ALK earns a higher WallStSmart Score of 50/100 (C-).
AAL
Hold47
out of 100
Grade: D+
ALK
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+30.5%
Fair Value
$20.66
Current Price
$13.50
$7.16 discount
Margin of Safety
+54.2%
Fair Value
$125.55
Current Price
$42.82
$82.73 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
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
ROE of 2.0% — below average capital efficiency
0.5% margin — thin
Elevated debt levels
Premium valuation, high expectations priced in
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 : ALK
The strongest argument for ALK centers on Price/Book. PEG of 1.20 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 : ALK
The primary concerns for ALK are Return on Equity, Profit Margin, Debt/Equity. A P/E of 96.6x leaves little room for execution misses. Debt-to-equity of 1.79 is elevated, increasing financial risk.
Key Dynamics to Monitor
AAL carries more volatility with a beta of 1.36 — 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.
Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ALK scores higher overall (50/100 vs 47/100). AAL offers better value entry with a 30.5% 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.
Alaska Air Group Inc
INDUSTRIALS · AIRLINES · USA
Alaska Air Group is an airline holding company based in SeaTac, Washington, United States.
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