WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

United Airlines Holdings Inc generates 315% more annual revenue ($59.07B vs $14.24B). UAL leads profitability with a 5.7% profit margin vs 0.7%. ALK appears more attractively valued with a PEG of 1.20. UAL earns a higher WallStSmart Score of 60/100 (C).

ALK

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 4.0Value: 7.3Quality: 4.3
Piotroski: 4/9Altman Z: 1.08

UAL

Buy

60

out of 100

Grade: C

Growth: 5.3Profit: 6.0Value: 7.3Quality: 4.0
Piotroski: 6/9Altman Z: 1.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALKSignificantly Overvalued (-919.5%)

Margin of Safety

-919.5%

Fair Value

$5.64

Current Price

$39.28

$33.64 premium

UndervaluedFair: $5.64Overvalued
UALUndervalued (+43.5%)

Margin of Safety

+43.5%

Fair Value

$201.55

Current Price

$92.95

$108.60 discount

UndervaluedFair: $201.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALK1 strengths · Avg: 10.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

UAL3 strengths · Avg: 9.0/10
P/E RatioValuation
9.2x10/10

Attractively priced relative to earnings

Return on EquityProfitability
24.0%9/10

Every $100 of equity generates 24 in profit

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Areas to Watch

ALK4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.8%4/10

2.8% revenue growth

Return on EquityProfitability
2.4%3/10

ROE of 2.4% — below average capital efficiency

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Operating MarginProfitability
3.2%3/10

Operating margin of 3.2%

UAL4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Profit MarginProfitability
5.7%3/10

5.7% margin — thin

PEG RatioValuation
6.862/10

Expensive relative to growth rate

Free Cash FlowQuality
$-604.00M2/10

Negative free cash flow — burning cash

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, Return on Equity, Price/Book.

Bear Case : ALK

The primary concerns for ALK are Revenue Growth, Return on Equity, Profit Margin. A P/E of 46.4x leaves little room for execution misses. Thin 0.7% margins leave little buffer for downturns.

Bear Case : UAL

The primary concerns for UAL are Revenue Growth, Profit Margin, PEG Ratio. Debt-to-equity of 2.39 is elevated, increasing financial risk.

Key Dynamics to Monitor

UAL carries more volatility with a beta of 1.25 — expect wider price swings.

UAL is growing revenue faster at 4.8% — sustainability is the question.

ALK generates stronger free cash flow (-440M), providing more financial flexibility.

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

Bottom Line

UAL scores higher overall (60/100 vs 49/100). 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.

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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