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 885% more annual revenue ($55.99B vs $5.68B). AERO leads profitability with a 3.8% profit margin vs 0.4%. AERO trades at a lower P/E of 0.7x. AAL earns a higher WallStSmart Score of 47/100 (D+).

AAL

Hold

47

out of 100

Grade: D+

Growth: 4.0Profit: 3.5Value: 7.3Quality: 4.5
Piotroski: 3/9Altman Z: 0.59

AERO

Hold

38

out of 100

Grade: F

Growth: 5.3Profit: 4.5Value: 6.7Quality: 4.5
Piotroski: 2/9Altman Z: 0.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AALUndervalued (+30.3%)

Margin of Safety

+30.3%

Fair Value

$20.59

Current Price

$14.84

$5.75 discount

UndervaluedFair: $20.59Overvalued

Intrinsic value data unavailable for AERO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAL2 strengths · Avg: 9.0/10
Debt/EquityHealth
-8.5610/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.578/10

Growing faster than its price suggests

AERO2 strengths · Avg: 10.0/10
P/E RatioValuation
0.7x10/10

Attractively priced relative to earnings

Debt/EquityHealth
-6.8310/10

Conservative balance sheet, low leverage

Areas to Watch

AAL4 concerns · Avg: 2.8/10
Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
0.4%3/10

0.4% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
48.3x2/10

Premium valuation, high expectations priced in

AERO4 concerns · Avg: 3.0/10
Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Operating MarginProfitability
4.2%3/10

Operating margin of 4.2%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : AAL

The strongest argument for AAL centers on Debt/Equity, PEG Ratio. Revenue growth of 10.8% demonstrates continued momentum. PEG of 0.57 suggests the stock is reasonably priced for its growth.

Bull Case : AERO

The strongest argument for AERO centers on P/E Ratio, Debt/Equity. Revenue growth of 12.6% demonstrates continued momentum.

Bear Case : AAL

The primary concerns for AAL are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 48.3x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.

Bear Case : AERO

The primary concerns for AERO are Return on Equity, Profit Margin, Operating Margin. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

AERO is growing revenue faster at 12.6% — sustainability is the question.

AERO generates stronger free cash flow (131M), providing more financial flexibility.

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

Bottom Line

AAL scores higher overall (47/100 vs 38/100) and 10.8% revenue growth. Both earn "Hold" 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.

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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