WallStSmart

Allegiant Travel Company (ALGT)vsUnited Airlines Holdings Inc (UAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

United Airlines Holdings Inc generates 2190% more annual revenue ($60.47B vs $2.64B). UAL leads profitability with a 6.1% profit margin vs -1.3%. ALGT appears more attractively valued with a PEG of 0.85. UAL earns a higher WallStSmart Score of 67/100 (B-).

ALGT

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 3.5Value: 7.0Quality: 4.0
Piotroski: 4/9Altman Z: 1.18

UAL

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 5.5Value: 4.7Quality: 4.5
Piotroski: 6/9Altman Z: 1.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALGTUndervalued (+17.3%)

Margin of Safety

+17.3%

Fair Value

$132.18

Current Price

$84.12

$48.06 discount

UndervaluedFair: $132.18Overvalued
UALSignificantly Overvalued (-77.4%)

Margin of Safety

-77.4%

Fair Value

$65.13

Current Price

$104.94

$39.81 premium

UndervaluedFair: $65.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALGT3 strengths · Avg: 8.7/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

PEG RatioValuation
0.858/10

Growing faster than its price suggests

EPS GrowthGrowth
32.6%8/10

Earnings expanding 32.6% YoY

UAL5 strengths · Avg: 9.0/10
P/E RatioValuation
10.3x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
84.5%10/10

Earnings expanding 84.5% YoY

Return on EquityProfitability
23.1%9/10

Every $100 of equity generates 23 in profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$3.13B8/10

Generating 3.1B in free cash flow

Areas to Watch

ALGT4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Debt/EquityHealth
1.693/10

Elevated debt levels

Return on EquityProfitability
-3.1%2/10

ROE of -3.1% — below average capital efficiency

Altman Z-ScoreHealth
1.182/10

Distress zone — elevated risk

UAL4 concerns · Avg: 2.8/10
Profit MarginProfitability
6.1%3/10

6.1% margin — thin

Operating MarginProfitability
4.3%3/10

Operating margin of 4.3%

Debt/EquityHealth
1.953/10

Elevated debt levels

PEG RatioValuation
6.502/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : ALGT

The strongest argument for ALGT centers on Price/Book, PEG Ratio, EPS Growth. PEG of 0.85 suggests the stock is reasonably priced for its growth.

Bull Case : UAL

The strongest argument for UAL centers on P/E Ratio, EPS Growth, Return on Equity. Revenue growth of 10.6% demonstrates continued momentum.

Bear Case : ALGT

The primary concerns for ALGT are Revenue Growth, Debt/Equity, Return on Equity. Debt-to-equity of 1.69 is elevated, increasing financial risk.

Bear Case : UAL

The primary concerns for UAL are Profit Margin, Operating Margin, Debt/Equity. Debt-to-equity of 1.95 is elevated, increasing financial risk.

Key Dynamics to Monitor

ALGT profiles as a turnaround stock while UAL is a value play — different risk/reward profiles.

ALGT carries more volatility with a beta of 1.56 — expect wider price swings.

UAL is growing revenue faster at 10.6% — sustainability is the question.

UAL generates stronger free cash flow (3.1B), providing more financial flexibility.

Bottom Line

UAL scores higher overall (67/100 vs 59/100) and 10.6% revenue growth. ALGT offers better value entry with a 17.3% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Allegiant Travel Company

INDUSTRIALS · AIRLINES · USA

Allegiant Travel Company, a leisure travel company, provides travel products and services to residents of underserved cities in the United States. The company is headquartered in Las Vegas, Nevada.

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United Airlines Holdings Inc

INDUSTRIALS · AIRLINES · USA

United Airlines Holdings, Inc. (formerly known as United Continental Holdings, Inc., UAL Corporation, Allegis Corporation and founded originally as UAL, Inc.) is a publicly traded airline holding company headquartered in the Willis Tower in Chicago. UAH owns and operates United Airlines, Inc.

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