Alaska Air Group Inc (ALK)vsLATAM Airlines Group S.A. (LTM)
ALK
Alaska Air Group Inc
$42.82
+0.30%
INDUSTRIALS · Cap: $5.27B
LTM
LATAM Airlines Group S.A.
$48.32
-2.80%
INDUSTRIALS · Cap: $15.59B
Smart Verdict
WallStSmart Research — data-driven comparison
LATAM Airlines Group S.A. generates 4% more annual revenue ($15.00B vs $14.40B). LTM leads profitability with a 11.2% profit margin vs 0.5%. ALK appears more attractively valued with a PEG of 1.20. LTM earns a higher WallStSmart Score of 65/100 (C+).
ALK
Buy50
out of 100
Grade: C-
LTM
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+54.2%
Fair Value
$125.55
Current Price
$42.82
$82.73 discount
Intrinsic value data unavailable for LTM.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Attractively priced relative to earnings
Every $100 of equity generates 87 in profit
Earnings expanding 70.7% YoY
Revenue surging 21.9% year-over-year
Areas to Watch
ROE of 2.0% — below average capital efficiency
0.5% margin — thin
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 8.1x book value
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : ALK
The strongest argument for ALK centers on Price/Book. PEG of 1.20 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 21.9% demonstrates continued momentum.
Bear Case : ALK
The primary concerns for ALK are Return on Equity, Profit Margin, Debt/Equity. A P/E of 96.6x leaves little room for execution misses. Debt-to-equity of 1.79 is elevated, increasing financial risk.
Bear Case : LTM
The primary concerns for LTM are Price/Book, PEG Ratio, Altman Z-Score. Debt-to-equity of 4.34 is elevated, increasing financial risk.
Key Dynamics to Monitor
ALK profiles as a value stock while LTM is a growth play — different risk/reward profiles.
ALK carries more volatility with a beta of 1.31 — expect wider price swings.
LTM is growing revenue faster at 21.9% — sustainability is the question.
LTM generates stronger free cash flow (588M), providing more financial flexibility.
Bottom Line
LTM scores higher overall (65/100 vs 50/100) and 21.9% revenue growth. ALK offers better value entry with a 54.2% margin of safety. Both earn "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.
Alaska Air Group Inc
INDUSTRIALS · AIRLINES · USA
Alaska Air Group is an airline holding company based in SeaTac, Washington, United States.
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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