WallStSmart

American Airlines Group (AAL)vsPACCAR Inc (PCAR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Airlines Group generates 110% more annual revenue ($58.34B vs $27.82B). PCAR leads profitability with a 9.0% profit margin vs -0.6%. AAL appears more attractively valued with a PEG of 0.09. PCAR earns a higher WallStSmart Score of 54/100 (C-).

AAL

Hold

46

out of 100

Grade: D+

Growth: 4.7Profit: 3.5Value: 8.3Quality: 4.5
Piotroski: 3/9Altman Z: 0.59

PCAR

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 6.0Value: 5.3Quality: 7.0
Piotroski: 2/9Altman Z: 2.57
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AALUndervalued (+32.7%)

Margin of Safety

+32.7%

Fair Value

$21.33

Current Price

$13.01

$8.32 discount

UndervaluedFair: $21.33Overvalued
PCARSignificantly Overvalued (-43.2%)

Margin of Safety

-43.2%

Fair Value

$85.69

Current Price

$122.73

$37.04 premium

UndervaluedFair: $85.69Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAL3 strengths · Avg: 9.3/10
PEG RatioValuation
0.0910/10

Growing faster than its price suggests

Debt/EquityHealth
-9.0010/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
16.3%8/10

16.3% revenue growth

PCAR2 strengths · Avg: 8.5/10
Market CapQuality
$64.60B9/10

Large-cap with strong market position

PEG RatioValuation
1.008/10

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

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%

PCAR4 concerns · Avg: 3.8/10
P/E RatioValuation
25.8x4/10

Moderate valuation

Revenue GrowthGrowth
0.5%4/10

0.5% revenue growth

EPS GrowthGrowth
4.2%4/10

4.2% earnings growth

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 PEG Ratio, Debt/Equity, Revenue Growth. Revenue growth of 16.3% demonstrates continued momentum. PEG of 0.09 suggests the stock is reasonably priced for its growth.

Bull Case : PCAR

The strongest argument for PCAR centers on Market Cap, PEG Ratio. PEG of 1.00 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 : PCAR

The primary concerns for PCAR are P/E Ratio, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

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

AAL carries more volatility with a beta of 1.33 — expect wider price swings.

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

PCAR generates stronger free cash flow (309M), providing more financial flexibility.

Bottom Line

PCAR scores higher overall (54/100 vs 46/100). AAL offers better value entry with a 32.7% 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.

PACCAR Inc

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

PACCAR Inc is an American Fortune 500 company and counts among the largest manufacturers of medium- and heavy-duty trucks in the world. PACCAR is engaged in the design, manufacture and customer support of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, Leyland Trucks, and DAF nameplates. PACCAR also designs and manufactures powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.

Want to dig deeper into these stocks?