WallStSmart

American Airlines Group (AAL)vsAlaska Air Group Inc (ALK)

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Smart Verdict

WallStSmart Research — data-driven comparison

American Airlines Group generates 298% more annual revenue ($60.98B vs $15.30B). AAL leads profitability with a -0.8% profit margin vs -2.6%. AAL appears more attractively valued with a PEG of 0.12. ALK earns a higher WallStSmart Score of 50/100 (C-).

AAL

Hold

46

out of 100

Grade: D+

Growth: 4.7Profit: 3.5Value: 8.3Quality: 4.5
Piotroski: 3/9Altman Z: 0.59

ALK

Buy

50

out of 100

Grade: C-

Growth: 5.3Profit: 3.0Value: 7.0Quality: 3.5
Piotroski: 4/9Altman Z: 1.08
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AALUndervalued (+35.2%)

Margin of Safety

+35.2%

Fair Value

$22.15

Current Price

$12.82

$9.33 discount

UndervaluedFair: $22.15Overvalued
ALKUndervalued (+55.3%)

Margin of Safety

+55.3%

Fair Value

$128.74

Current Price

$36.78

$91.96 discount

UndervaluedFair: $128.74Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAL3 strengths · Avg: 9.3/10
PEG RatioValuation
0.1210/10

Growing faster than its price suggests

Debt/EquityHealth
-8.5910/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
19.3%8/10

19.3% revenue growth

ALK1 strengths · Avg: 10.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Areas to Watch

AAL4 concerns · Avg: 2.8/10
Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Operating MarginProfitability
0.9%3/10

Operating margin of 0.9%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-88.2%2/10

Earnings declined 88.2%

ALK4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.0%3/10

ROE of 2.0% — below average capital efficiency

Operating MarginProfitability
2.5%3/10

Operating margin of 2.5%

EPS GrowthGrowth
-68.3%2/10

Earnings declined 68.3%

Free Cash FlowQuality
$-293.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : AAL

The strongest argument for AAL centers on PEG Ratio, Debt/Equity, Revenue Growth. Revenue growth of 19.3% demonstrates continued momentum. PEG of 0.12 suggests the stock is reasonably priced for its growth.

Bull Case : ALK

The strongest argument for ALK centers on Price/Book. Revenue growth of 14.4% demonstrates continued momentum. 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, Operating Margin, Piotroski F-Score.

Bear Case : ALK

The primary concerns for ALK are Return on Equity, Operating Margin, EPS Growth. Debt-to-equity of 2.07 is elevated, increasing financial risk.

Key Dynamics to Monitor

AAL profiles as a growth stock while ALK is a turnaround play — different risk/reward profiles.

AAL carries more volatility with a beta of 1.38 — expect wider price swings.

AAL is growing revenue faster at 19.3% — sustainability is the question.

ALK generates stronger free cash flow (-293M), providing more financial flexibility.

Bottom Line

ALK scores higher overall (50/100 vs 46/100) and 14.4% revenue growth. AAL offers better value entry with a 35.2% 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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