WallStSmart

American Airlines Group (AAL)vsGE Aerospace (GE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Airlines Group generates 16% more annual revenue ($55.99B vs $48.31B). GE leads profitability with a 17.9% profit margin vs 0.4%. AAL appears more attractively valued with a PEG of 0.82. GE earns a higher WallStSmart Score of 59/100 (C).

AAL

Hold

45

out of 100

Grade: D+

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

GE

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 8.0Value: 3.7Quality: 5.0
Piotroski: 4/9Altman Z: 1.69
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AALUndervalued (+30.7%)

Margin of Safety

+30.7%

Fair Value

$20.72

Current Price

$14.64

$6.08 discount

UndervaluedFair: $20.72Overvalued

Intrinsic value data unavailable for GE.

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
0.828/10

Growing faster than its price suggests

Free Cash FlowQuality
$3.41B8/10

Generating 3.4B in free cash flow

GE5 strengths · Avg: 8.8/10
Market CapQuality
$307.92B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
48.0%10/10

Every $100 of equity generates 48 in profit

Operating MarginProfitability
20.2%8/10

Strong operational efficiency at 20.2%

Revenue GrowthGrowth
24.7%8/10

Revenue surging 24.7% year-over-year

Free Cash FlowQuality
$1.50B8/10

Generating 1.5B in free cash flow

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
47.2x2/10

Premium valuation, high expectations priced in

GE4 concerns · Avg: 3.8/10
P/E RatioValuation
36.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
18.2x4/10

Trading at 18.2x book value

Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

Debt/EquityHealth
1.123/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : AAL

The strongest argument for AAL centers on Debt/Equity, PEG Ratio, Free Cash Flow. Revenue growth of 10.8% demonstrates continued momentum. PEG of 0.82 suggests the stock is reasonably priced for its growth.

Bull Case : GE

The strongest argument for GE centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 17.9% and operating margin at 20.2%. Revenue growth of 24.7% demonstrates continued momentum.

Bear Case : AAL

The primary concerns for AAL are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 47.2x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.

Bear Case : GE

The primary concerns for GE are P/E Ratio, Price/Book, Altman Z-Score.

Key Dynamics to Monitor

AAL profiles as a value stock while GE is a growth play — different risk/reward profiles.

GE carries more volatility with a beta of 1.35 — expect wider price swings.

GE is growing revenue faster at 24.7% — sustainability is the question.

AAL generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

GE scores higher overall (59/100 vs 45/100), backed by strong 17.9% margins and 24.7% revenue growth. AAL offers better value entry with a 30.7% margin of safety. 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.

American Airlines Group

INDUSTRIALS · AIRLINES · USA

American Airlines Group Inc. is an American publicly traded airline holding company headquartered in Fort Worth, Texas.

GE Aerospace

INDUSTRIALS · AEROSPACE & DEFENSE · USA

General Electric Company (GE) is an American multinational conglomerate incorporated in New York City and headquartered in Boston. As of 2018, the company operates through the following segments: aviation, healthcare, power, renewable energy, digital industry, additive manufacturing and venture capital and finance.

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