WallStSmart

American Airlines Group (AAL)vsGE Aerospace (GE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Airlines Group generates 19% more annual revenue ($54.63B vs $45.85B). GE leads profitability with a 19.0% profit margin vs 0.2%. AAL appears more attractively valued with a PEG of 0.09. GE earns a higher WallStSmart Score of 65/100 (C+).

AAL

Hold

44

out of 100

Grade: D

Growth: 3.3Profit: 4.0Value: 4.7Quality: 3.3
Piotroski: 3/9Altman Z: 0.59

GE

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 4.7Quality: 5.3
Piotroski: 4/9Altman Z: 1.69
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AALSignificantly Overvalued (-1137.1%)

Margin of Safety

-1137.1%

Fair Value

$1.16

Current Price

$10.30

$9.14 premium

UndervaluedFair: $1.16Overvalued
GEUndervalued (+25.0%)

Margin of Safety

+25.0%

Fair Value

$377.21

Current Price

$282.81

$94.40 discount

UndervaluedFair: $377.21Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAL1 strengths · Avg: 10.0/10
PEG RatioValuation
0.0910/10

Growing faster than its price suggests

GE5 strengths · Avg: 8.8/10
Market CapQuality
$298.31B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
44.7%10/10

Every $100 of equity generates 45 in profit

Revenue GrowthGrowth
17.6%8/10

17.6% revenue growth

EPS GrowthGrowth
37.4%8/10

Earnings expanding 37.4% YoY

Free Cash FlowQuality
$1.79B8/10

Generating 1.8B in free cash flow

Areas to Watch

AAL4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.5%4/10

2.5% revenue growth

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
0.2%3/10

0.2% margin — thin

Operating MarginProfitability
3.6%3/10

Operating margin of 3.6%

GE4 concerns · Avg: 3.5/10
P/E RatioValuation
35.1x4/10

Premium valuation, high expectations priced in

Price/BookValuation
15.9x4/10

Trading at 15.9x book value

Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

PEG RatioValuation
4.872/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : AAL

The strongest argument for AAL centers on PEG Ratio. PEG of 0.09 suggests the stock is reasonably priced for its growth.

Bull Case : GE

The strongest argument for GE centers on Market Cap, Return on Equity, Revenue Growth. Profitability is solid with margins at 19.0% and operating margin at 19.6%. Revenue growth of 17.6% demonstrates continued momentum.

Bear Case : AAL

The primary concerns for AAL are Revenue Growth, Return on Equity, Profit Margin. A P/E of 60.6x leaves little room for execution misses. Thin 0.2% margins leave little buffer for downturns.

Bear Case : GE

The primary concerns for GE are P/E Ratio, Price/Book, Altman Z-Score.

Key Dynamics to Monitor

AAL profiles as a value stock while GE is a growth play — different risk/reward profiles.

GE carries more volatility with a beta of 1.37 — expect wider price swings.

GE is growing revenue faster at 17.6% — sustainability is the question.

GE generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

GE scores higher overall (65/100 vs 44/100), backed by strong 19.0% margins and 17.6% revenue growth. 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.

GE Aerospace

INDUSTRIALS · AEROSPACE & DEFENSE · USA

General Electric Company (GE) is an American multinational conglomerate incorporated in New York City and headquartered in Boston. As of 2018, the company operates through the following segments: aviation, healthcare, power, renewable energy, digital industry, additive manufacturing and venture capital and finance.

Want to dig deeper into these stocks?