WallStSmart

American Airlines Group (AAL)vsJetBlue Airways Corp (JBLU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Airlines Group generates 511% more annual revenue ($55.99B vs $9.16B). AAL leads profitability with a 0.4% profit margin vs -7.8%. AAL appears more attractively valued with a PEG of 0.51. 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: 3.3
Piotroski: 3/9Altman Z: 0.59

JBLU

Hold

46

out of 100

Grade: D+

Growth: 2.7Profit: 2.0Value: 7.7Quality: 3.0
Piotroski: 4/9Altman Z: 0.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AALUndervalued (+72.3%)

Margin of Safety

+72.3%

Fair Value

$51.88

Current Price

$12.79

$39.09 discount

UndervaluedFair: $51.88Overvalued
JBLUUndervalued (+78.9%)

Margin of Safety

+78.9%

Fair Value

$27.58

Current Price

$4.96

$22.62 discount

UndervaluedFair: $27.58Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAL2 strengths · Avg: 8.0/10
PEG RatioValuation
0.518/10

Growing faster than its price suggests

Free Cash FlowQuality
$3.41B8/10

Generating 3.4B in free cash flow

JBLU2 strengths · Avg: 9.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

PEG RatioValuation
0.888/10

Growing faster than its price suggests

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
41.3x2/10

Premium valuation, high expectations priced in

JBLU4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

Market CapQuality
$1.90B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-33.5%2/10

ROE of -33.5% — below average capital efficiency

EPS GrowthGrowth
-82.9%2/10

Earnings declined 82.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : AAL

The strongest argument for AAL centers on PEG Ratio, Free Cash Flow. Revenue growth of 10.8% demonstrates continued momentum. PEG of 0.51 suggests the stock is reasonably priced for its growth.

Bull Case : JBLU

The strongest argument for JBLU centers on Price/Book, PEG Ratio. PEG of 0.88 suggests the stock is reasonably priced for its growth.

Bear Case : AAL

The primary concerns for AAL are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 41.3x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.

Bear Case : JBLU

The primary concerns for JBLU are Revenue Growth, Market Cap, Return on Equity. Debt-to-equity of 4.84 is elevated, increasing financial risk.

Key Dynamics to Monitor

AAL profiles as a value stock while JBLU is a turnaround play — different risk/reward profiles.

JBLU carries more volatility with a beta of 1.69 — expect wider price swings.

AAL is growing revenue faster at 10.8% — sustainability is the question.

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

Bottom Line

AAL scores higher overall (47/100 vs 46/100) and 10.8% revenue growth. JBLU offers better value entry with a 78.9% 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.

JetBlue Airways Corp

INDUSTRIALS · AIRLINES · USA

JetBlue Airways Corporation provides passenger air transportation services. The company is headquartered in Long Island City, New York.

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