WallStSmart

American Airlines Group (AAL)vsAlaska Air Group Inc (ALK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Airlines Group generates 295% more annual revenue ($58.34B vs $14.76B). AAL leads profitability with a -0.6% profit margin vs -1.2%. AAL appears more attractively valued with a PEG of 0.85. ALK earns a higher WallStSmart Score of 47/100 (D+).

AAL

Hold

47

out of 100

Grade: D+

Growth: 4.7Profit: 3.5Value: 7.7Quality: 4.5
Piotroski: 3/9Altman Z: 0.59

ALK

Hold

47

out of 100

Grade: D+

Growth: 5.3Profit: 2.5Value: 7.0Quality: 3.5
Piotroski: 4/9Altman Z: 1.08
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AALUndervalued (+33.0%)

Margin of Safety

+33.0%

Fair Value

$21.43

Current Price

$16.58

$4.85 discount

UndervaluedFair: $21.43Overvalued
ALKUndervalued (+54.8%)

Margin of Safety

+54.8%

Fair Value

$127.27

Current Price

$52.05

$75.22 discount

UndervaluedFair: $127.27Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAL3 strengths · Avg: 8.7/10
Debt/EquityHealth
-8.5610/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.858/10

Growing faster than its price suggests

Revenue GrowthGrowth
16.3%8/10

16.3% revenue growth

ALK1 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Areas to Watch

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

ROE of 0.0% — below average capital efficiency

Operating MarginProfitability
2.8%3/10

Operating margin of 2.8%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-88.2%2/10

Earnings declined 88.2%

ALK4 concerns · Avg: 2.3/10
Return on EquityProfitability
2.0%3/10

ROE of 2.0% — below average capital efficiency

EPS GrowthGrowth
-68.3%2/10

Earnings declined 68.3%

Free Cash FlowQuality
$02/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.082/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : AAL

The strongest argument for AAL centers on Debt/Equity, PEG Ratio, Revenue Growth. Revenue growth of 16.3% demonstrates continued momentum. PEG of 0.85 suggests the stock is reasonably priced for its growth.

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.

Bear Case : AAL

The primary concerns for AAL are Return on Equity, Operating Margin, Piotroski F-Score.

Bear Case : ALK

The primary concerns for ALK are Return on Equity, EPS Growth, Free Cash Flow. Debt-to-equity of 2.08 is elevated, increasing financial risk.

Key Dynamics to Monitor

AAL profiles as a growth stock while ALK is a turnaround play — different risk/reward profiles.

AAL carries more volatility with a beta of 1.32 — expect wider price swings.

AAL is growing revenue faster at 16.3% — sustainability is the question.

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

Bottom Line

AAL scores higher overall (47/100 vs 47/100) and 16.3% revenue growth. ALK offers better value entry with a 54.8% margin of safety. 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.

Alaska Air Group Inc

INDUSTRIALS · AIRLINES · USA

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

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