WallStSmart

American Airlines Group (AAL)vsJetBlue Airways Corp (JBLU)

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Smart Verdict

WallStSmart Research — data-driven comparison

American Airlines Group generates 514% more annual revenue ($58.34B vs $9.50B). AAL leads profitability with a -0.6% profit margin vs -9.3%. AAL appears more attractively valued with a PEG of 0.09. JBLU earns a higher WallStSmart Score of 50/100 (D+).

AAL

Hold

46

out of 100

Grade: D+

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

JBLU

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 2.0Value: 7.7Quality: 3.0
Piotroski: 4/9Altman Z: 0.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AALUndervalued (+32.6%)

Margin of Safety

+32.6%

Fair Value

$21.29

Current Price

$13.87

$7.42 discount

UndervaluedFair: $21.29Overvalued
JBLUUndervalued (+68.3%)

Margin of Safety

+68.3%

Fair Value

$18.33

Current Price

$4.40

$13.93 discount

UndervaluedFair: $18.33Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAL3 strengths · Avg: 9.3/10
PEG RatioValuation
0.0910/10

Growing faster than its price suggests

Debt/EquityHealth
-9.0010/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
16.3%8/10

16.3% revenue growth

JBLU2 strengths · Avg: 9.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

PEG RatioValuation
0.888/10

Growing faster than its price suggests

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
2.8%3/10

Operating margin of 2.8%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-88.2%2/10

Earnings declined 88.2%

JBLU4 concerns · Avg: 2.3/10
Market CapQuality
$1.65B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-39.4%2/10

ROE of -39.4% — below average capital efficiency

EPS GrowthGrowth
-82.9%2/10

Earnings declined 82.9%

Free Cash FlowQuality
$-389.00M2/10

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 16.3% demonstrates continued momentum. PEG of 0.09 suggests the stock is reasonably priced for its growth.

Bull Case : JBLU

The strongest argument for JBLU centers on Price/Book, PEG Ratio. Revenue growth of 14.5% demonstrates continued momentum. PEG of 0.88 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 : JBLU

The primary concerns for JBLU are Market Cap, Return on Equity, EPS Growth. Debt-to-equity of 5.91 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

JBLU carries more volatility with a beta of 1.70 — expect wider price swings.

AAL is growing revenue faster at 16.3% — sustainability is the question.

AAL generates stronger free cash flow (-351M), providing more financial flexibility.

Bottom Line

JBLU scores higher overall (50/100 vs 46/100) and 14.5% revenue growth. AAL offers better value entry with a 32.6% margin of safety. Both earn "Hold" 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.

JetBlue Airways Corp

INDUSTRIALS · AIRLINES · USA

JetBlue Airways Corporation provides passenger air transportation services. The company is headquartered in Long Island City, New York.

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