WallStSmart

Alaska Air Group Inc (ALK)vsUnited Airlines Holdings Inc (UAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

United Airlines Holdings Inc generates 320% more annual revenue ($60.47B vs $14.40B). UAL leads profitability with a 6.1% profit margin vs 0.5%. ALK appears more attractively valued with a PEG of 1.20. UAL earns a higher WallStSmart Score of 67/100 (B-).

ALK

Buy

50

out of 100

Grade: C-

Growth: 5.3Profit: 3.5Value: 6.0Quality: 4.0
Piotroski: 4/9Altman Z: 1.08

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

ALKUndervalued (+54.2%)

Margin of Safety

+54.2%

Fair Value

$125.55

Current Price

$42.82

$82.73 discount

UndervaluedFair: $125.55Overvalued
UALSignificantly Overvalued (-81.3%)

Margin of Safety

-81.3%

Fair Value

$65.25

Current Price

$104.94

$39.69 premium

UndervaluedFair: $65.25Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALK1 strengths · Avg: 10.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

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

ALK4 concerns · Avg: 2.8/10
Return on EquityProfitability
2.0%3/10

ROE of 2.0% — below average capital efficiency

Profit MarginProfitability
0.5%3/10

0.5% margin — thin

Debt/EquityHealth
1.793/10

Elevated debt levels

P/E RatioValuation
96.6x2/10

Premium valuation, high expectations priced in

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 : 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 : 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 : 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 : 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

ALK carries more volatility with a beta of 1.31 — 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.

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

Bottom Line

UAL scores higher overall (67/100 vs 50/100) and 10.6% revenue growth. ALK offers better value entry with a 54.2% 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.

Alaska Air Group Inc

INDUSTRIALS · AIRLINES · USA

Alaska Air Group is an airline holding company based in SeaTac, Washington, United States.

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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