WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Airlines Group generates 284% more annual revenue ($54.63B vs $14.24B). ALK leads profitability with a 0.7% profit margin vs 0.2%. AAL appears more attractively valued with a PEG of 0.09. ALK earns a higher WallStSmart Score of 49/100 (D+).

AAL

Hold

44

out of 100

Grade: D

Growth: 3.3Profit: 4.0Value: 4.7Quality: 3.3
Piotroski: 3/9Altman Z: 0.59

ALK

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 4.0Value: 7.3Quality: 4.3
Piotroski: 4/9Altman Z: 1.08
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
ALKSignificantly Overvalued (-919.5%)

Margin of Safety

-919.5%

Fair Value

$5.64

Current Price

$39.28

$33.64 premium

UndervaluedFair: $5.64Overvalued

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

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

Reasonable price relative to book value

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%

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%

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 : 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 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 : 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.

Key Dynamics to Monitor

AAL carries more volatility with a beta of 1.19 — expect wider price swings.

ALK is growing revenue faster at 2.8% — 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

ALK scores higher overall (49/100 vs 44/100). 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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