WallStSmart

American Airlines Group (AAL)vsNorthrop Grumman Corporation (NOC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Airlines Group generates 32% more annual revenue ($55.99B vs $42.37B). NOC leads profitability with a 10.8% profit margin vs 0.4%. AAL appears more attractively valued with a PEG of 0.82. NOC earns a higher WallStSmart Score of 63/100 (C+).

AAL

Hold

45

out of 100

Grade: D+

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

NOC

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 5.0Quality: 5.0
Piotroski: 3/9Altman Z: 1.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AALUndervalued (+30.7%)

Margin of Safety

+30.7%

Fair Value

$20.72

Current Price

$14.64

$6.08 discount

UndervaluedFair: $20.72Overvalued

Intrinsic value data unavailable for NOC.

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
0.828/10

Growing faster than its price suggests

Free Cash FlowQuality
$3.41B8/10

Generating 3.4B in free cash flow

NOC4 strengths · Avg: 9.0/10
EPS GrowthGrowth
84.9%10/10

Earnings expanding 84.9% YoY

Market CapQuality
$78.37B9/10

Large-cap with strong market position

Return on EquityProfitability
26.7%9/10

Every $100 of equity generates 27 in profit

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

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
47.2x2/10

Premium valuation, high expectations priced in

NOC4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.082/10

Expensive relative to growth rate

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 0.82 suggests the stock is reasonably priced for its growth.

Bull Case : NOC

The strongest argument for NOC centers on EPS Growth, Market Cap, Return on Equity.

Bear Case : AAL

The primary concerns for AAL are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 47.2x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.

Bear Case : NOC

The primary concerns for NOC are Revenue Growth, Altman Z-Score, Piotroski F-Score.

Key Dynamics to Monitor

AAL carries more volatility with a beta of 1.28 — 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.

Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NOC scores higher overall (63/100 vs 45/100). AAL offers better value entry with a 30.7% margin of safety. 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.

Northrop Grumman Corporation

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Northrop Grumman Corporation (NYSE: NOC) is an American multinational aerospace and defense technology company.

Visit Website →

Want to dig deeper into these stocks?