WallStSmart

American Airlines Group (AAL)vsVolaris (VLRS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Airlines Group generates 1698% more annual revenue ($54.63B vs $3.04B). AAL leads profitability with a 0.2% profit margin vs -3.4%. AAL appears more attractively valued with a PEG of 0.09. AAL earns a higher WallStSmart Score of 44/100 (D).

AAL

Hold

44

out of 100

Grade: D

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

VLRS

Hold

40

out of 100

Grade: F

Growth: 4.0Profit: 3.5Value: 6.7Quality: 2.5
Piotroski: 3/9Altman Z: 0.56
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AALSignificantly Overvalued (-1137.1%)

Margin of Safety

-1137.1%

Fair Value

$1.16

Current Price

$10.74

$9.58 premium

UndervaluedFair: $1.16Overvalued

Intrinsic value data unavailable for VLRS.

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

VLRS0 strengths · Avg: 0/10

No standout strengths identified

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%

VLRS4 concerns · Avg: 3.0/10
PEG RatioValuation
1.694/10

Expensive relative to growth rate

Market CapQuality
$831.20M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
33.0x2/10

Trading at 33.0x book value

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 : VLRS

VLRS has a balanced fundamental profile.

Bear Case : AAL

The primary concerns for AAL are Revenue Growth, Return on Equity, Profit Margin. A P/E of 63.2x leaves little room for execution misses. Thin 0.2% margins leave little buffer for downturns.

Bear Case : VLRS

The primary concerns for VLRS are PEG Ratio, Market Cap, Piotroski F-Score. Debt-to-equity of 14.75 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

AAL carries more volatility with a beta of 1.19 — expect wider price swings.

VLRS is growing revenue faster at 5.6% — sustainability is the question.

VLRS generates stronger free cash flow (165M), providing more financial flexibility.

Bottom Line

AAL scores higher overall (44/100 vs 40/100). 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.

Volaris

INDUSTRIALS · AIRLINES · USA

Controller Flies Compaa de Aviacin, SAB de CV, Concessionaire Flies Compaa de Aviacin, SAPI The company is headquartered in Mexico City, Mexico.

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