WallStSmart

American Airlines Group (AAL)vsDelta Air Lines Inc (DAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Delta Air Lines Inc generates 16% more annual revenue ($65.18B vs $55.99B). DAL leads profitability with a 6.9% profit margin vs 0.4%. AAL appears more attractively valued with a PEG of 0.51. DAL earns a higher WallStSmart Score of 67/100 (B-).

AAL

Hold

47

out of 100

Grade: D+

Growth: 4.0Profit: 3.5Value: 7.3Quality: 3.3
Piotroski: 3/9Altman Z: 0.59

DAL

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 6.0Value: 6.7Quality: 4.5
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AALUndervalued (+72.3%)

Margin of Safety

+72.3%

Fair Value

$51.88

Current Price

$12.79

$39.09 discount

UndervaluedFair: $51.88Overvalued
DALUndervalued (+19.6%)

Margin of Safety

+19.6%

Fair Value

$88.87

Current Price

$71.20

$17.67 discount

UndervaluedFair: $88.87Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAL2 strengths · Avg: 8.0/10
PEG RatioValuation
0.518/10

Growing faster than its price suggests

Free Cash FlowQuality
$3.41B8/10

Generating 3.4B in free cash flow

DAL5 strengths · Avg: 8.6/10
P/E RatioValuation
10.7x10/10

Attractively priced relative to earnings

Return on EquityProfitability
25.0%9/10

Every $100 of equity generates 25 in profit

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

EPS GrowthGrowth
44.6%8/10

Earnings expanding 44.6% YoY

Free Cash FlowQuality
$1.23B8/10

Generating 1.2B in free cash flow

Areas to Watch

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

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
0.4%3/10

0.4% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
41.3x2/10

Premium valuation, high expectations priced in

DAL3 concerns · Avg: 2.7/10
Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Operating MarginProfitability
3.2%3/10

Operating margin of 3.2%

PEG RatioValuation
39.292/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : AAL

The strongest argument for AAL centers on PEG Ratio, Free Cash Flow. Revenue growth of 10.8% demonstrates continued momentum. PEG of 0.51 suggests the stock is reasonably priced for its growth.

Bull Case : DAL

The strongest argument for DAL centers on P/E Ratio, Return on Equity, Price/Book. Revenue growth of 12.9% demonstrates continued momentum.

Bear Case : AAL

The primary concerns for AAL are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 41.3x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.

Bear Case : DAL

The primary concerns for DAL are Profit Margin, Operating Margin, PEG Ratio.

Key Dynamics to Monitor

AAL carries more volatility with a beta of 1.28 — expect wider price swings.

DAL is growing revenue faster at 12.9% — 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

DAL scores higher overall (67/100 vs 47/100) and 12.9% revenue growth. AAL offers better value entry with a 72.3% margin of safety. Both earn "Strong 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.

Delta Air Lines Inc

INDUSTRIALS · AIRLINES · USA

Delta Air Lines, Inc., typically referred to as Delta, is one of the major airlines of the United States and a legacy carrier. It is headquartered in Atlanta, Georgia.

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