WallStSmart

American Airlines Group (AAL)vsMesa Air Group Inc (MESA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Airlines Group generates 13691% more annual revenue ($55.99B vs $406.02M). AAL leads profitability with a 0.4% profit margin vs -43.7%. AAL earns a higher WallStSmart Score of 47/100 (D+).

AAL

Hold

47

out of 100

Grade: D+

Growth: 4.0Profit: 3.5Value: 7.3Quality: 4.5
Piotroski: 3/9Altman Z: 0.59

MESA

Hold

36

out of 100

Grade: F

Growth: 3.3Profit: 2.5Value: 5.0Quality: 4.5
Piotroski: 2/9Altman Z: 0.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AALUndervalued (+30.6%)

Margin of Safety

+30.6%

Fair Value

$20.69

Current Price

$13.50

$7.19 discount

UndervaluedFair: $20.69Overvalued

Intrinsic value data unavailable for MESA.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAL3 strengths · Avg: 8.7/10
Debt/EquityHealth
-8.5610/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.838/10

Growing faster than its price suggests

Free Cash FlowQuality
$3.41B8/10

Generating 3.4B in free cash flow

MESA1 strengths · Avg: 10.0/10
Debt/EquityHealth
-1.9610/10

Conservative balance sheet, low leverage

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
48.3x2/10

Premium valuation, high expectations priced in

MESA4 concerns · Avg: 2.5/10
Market CapQuality
$58.63M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-378.7%2/10

ROE of -378.7% — below average capital efficiency

Revenue GrowthGrowth
-21.3%2/10

Revenue declined 21.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : AAL

The strongest argument for AAL centers on Debt/Equity, PEG Ratio, Free Cash Flow. Revenue growth of 10.8% demonstrates continued momentum. PEG of 0.83 suggests the stock is reasonably priced for its growth.

Bull Case : MESA

The strongest argument for MESA centers on Debt/Equity.

Bear Case : AAL

The primary concerns for AAL are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 48.3x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.

Bear Case : MESA

The primary concerns for MESA are Market Cap, Piotroski F-Score, Return on Equity.

Key Dynamics to Monitor

AAL profiles as a value stock while MESA is a turnaround play — different risk/reward profiles.

MESA carries more volatility with a beta of 2.49 — expect wider price swings.

AAL is growing revenue faster at 10.8% — sustainability is the question.

AAL generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

AAL scores higher overall (47/100 vs 36/100) and 10.8% revenue growth. 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.

Mesa Air Group Inc

INDUSTRIALS · AIRLINES · USA

Mesa Air Group, Inc. is the parent company of Mesa Airlines, Inc. providing regional air transportation services under capacity purchase agreements with American Airlines and United Airlines. The company is headquartered in Phoenix, Arizona.

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