American Airlines Group (AAL)vsLATAM Airlines Group S.A. (LTM)
AAL
American Airlines Group
$10.43
-3.43%
INDUSTRIALS · Cap: $7.17B
LTM
LATAM Airlines Group S.A.
$47.71
-3.24%
INDUSTRIALS · Cap: $14.49B
Smart Verdict
WallStSmart Research — data-driven comparison
American Airlines Group generates 283% more annual revenue ($54.63B vs $14.27B). AAL leads profitability with a 20.0% profit margin vs 10.2%. AAL appears more attractively valued with a PEG of 0.09. LTM earns a higher WallStSmart Score of 63/100 (C+).
AAL
Hold44
out of 100
Grade: D
LTM
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1076.2%
Fair Value
$1.22
Current Price
$10.43
$9.21 premium
Margin of Safety
+73.6%
Fair Value
$232.13
Current Price
$47.71
$184.42 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Keeps 20 of every $100 in revenue as profit
Attractively priced relative to earnings
Every $100 of equity generates 143 in profit
Earnings expanding 87.5% YoY
16.1% revenue growth
Areas to Watch
2.5% revenue growth
ROE of 0.0% — below average capital efficiency
Operating margin of 3.6%
Weak financial health signals
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : AAL
The strongest argument for AAL centers on PEG Ratio, Profit Margin. Profitability is solid with margins at 20.0% and operating margin at 3.6%. PEG of 0.09 suggests the stock is reasonably priced for its growth.
Bull Case : LTM
The strongest argument for LTM centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 16.1% demonstrates continued momentum.
Bear Case : AAL
The primary concerns for AAL are Revenue Growth, Return on Equity, Operating Margin. A P/E of 60.3x leaves little room for execution misses.
Bear Case : LTM
The primary concerns for LTM are PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
AAL profiles as a value stock while LTM is a growth play — different risk/reward profiles.
AAL carries more volatility with a beta of 1.19 — expect wider price swings.
LTM is growing revenue faster at 16.1% — sustainability is the question.
LTM generates stronger free cash flow (571M), providing more financial flexibility.
Bottom Line
LTM scores higher overall (63/100 vs 44/100) and 16.1% 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.
LATAM Airlines Group S.A.
INDUSTRIALS · AIRLINES · USA
LATAM Airlines Group SA, provides passenger and cargo air transport services in Peru, Argentina, the United States, Europe, Colombia, Brazil, Ecuador, Chile, Asia Pacific and the rest of Latin America.
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