WallStSmart

American Airlines Group (AAL)vsSkyWest Inc (SKYW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Airlines Group generates 1246% more annual revenue ($54.63B vs $4.06B). SKYW leads profitability with a 10.6% profit margin vs 0.2%. AAL appears more attractively valued with a PEG of 0.09. SKYW earns a higher WallStSmart Score of 62/100 (C+).

AAL

Hold

44

out of 100

Grade: D

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

SKYW

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 6.5Value: 7.3Quality: 5.8
Piotroski: 5/9
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
SKYWSignificantly Overvalued (-48.5%)

Margin of Safety

-48.5%

Fair Value

$70.38

Current Price

$94.13

$23.75 premium

UndervaluedFair: $70.38Overvalued

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

SKYW2 strengths · Avg: 10.0/10
P/E RatioValuation
8.5x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

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%

SKYW3 concerns · Avg: 2.7/10
PEG RatioValuation
1.664/10

Expensive relative to growth rate

EPS GrowthGrowth
-5.1%2/10

Earnings declined 5.1%

Free Cash FlowQuality
$-26.68M2/10

Negative free cash flow — burning cash

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 : SKYW

The strongest argument for SKYW centers on P/E Ratio, Price/Book.

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 : SKYW

The primary concerns for SKYW are PEG Ratio, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

SKYW carries more volatility with a beta of 1.62 — expect wider price swings.

SKYW is growing revenue faster at 8.5% — sustainability is the question.

SKYW generates stronger free cash flow (-27M), providing more financial flexibility.

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

Bottom Line

SKYW scores higher overall (62/100 vs 44/100). 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.

SkyWest Inc

INDUSTRIALS · AIRLINES · USA

SkyWest, Inc., operates a regional airline in the United States. The company is headquartered in St. George, Utah.

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