WallStSmart

American Airlines Group (AAL)vsGrupo Aeroméxico, S.A.B. de C.V. (AERO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Airlines Group generates 920% more annual revenue ($54.63B vs $5.36B). AERO leads profitability with a 4.9% profit margin vs 0.2%. AERO trades at a lower P/E of 0.4x. 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

AERO

Avoid

28

out of 100

Grade: F

Growth: 4.0Profit: 6.0Value: 8.3Quality: 5.0
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
AEROUndervalued (+93.7%)

Margin of Safety

+93.7%

Fair Value

$296.48

Current Price

$13.67

$282.81 discount

UndervaluedFair: $296.48Overvalued

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

AERO1 strengths · Avg: 10.0/10
P/E RatioValuation
0.4x10/10

Attractively priced relative to earnings

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%

AERO4 concerns · Avg: 2.8/10
Market CapQuality
$260.71M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
4.9%3/10

4.9% margin — thin

Revenue GrowthGrowth
-4.4%2/10

Revenue declined 4.4%

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 : AERO

The strongest argument for AERO centers on P/E Ratio.

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 : AERO

The primary concerns for AERO are Market Cap, Return on Equity, Profit Margin. Thin 4.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

AAL is growing revenue faster at 2.5% — sustainability is the question.

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

Bottom Line

AAL scores higher overall (44/100 vs 28/100). AERO offers better value entry with a 93.7% margin of safety. Both earn "Hold" and "Avoid" 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.

Grupo Aeroméxico, S.A.B. de C.V.

INDUSTRIALS · AIRLINES · USA

AeroGrow International, Inc. is dedicated to the development, marketing, direct sales and wholesaling of indoor garden systems for consumers and retailers around the world. The company is headquartered in Boulder, Colorado.

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