WallStSmart

American Airlines Group (AAL)vsUnited Airlines Holdings Inc (UAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

United Airlines Holdings Inc generates 8% more annual revenue ($60.47B vs $55.99B). UAL leads profitability with a 6.1% profit margin vs 0.4%. AAL appears more attractively valued with a PEG of 0.51. UAL earns a higher WallStSmart Score of 67/100 (B-).

AAL

Hold

47

out of 100

Grade: D+

Growth: 4.0Profit: 3.5Value: 7.3Quality: 3.3
Piotroski: 3/9Altman Z: 0.59

UAL

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 6.0Value: 6.0Quality: 4.0
Piotroski: 6/9Altman Z: 1.16
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
UALUndervalued (+14.6%)

Margin of Safety

+14.6%

Fair Value

$133.39

Current Price

$96.62

$36.77 discount

UndervaluedFair: $133.39Overvalued

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

UAL5 strengths · Avg: 9.0/10
P/E RatioValuation
8.9x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
84.5%10/10

Earnings expanding 84.5% YoY

Return on EquityProfitability
25.7%9/10

Every $100 of equity generates 26 in profit

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$3.13B8/10

Generating 3.1B 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
41.3x2/10

Premium valuation, high expectations priced in

UAL4 concerns · Avg: 2.5/10
Profit MarginProfitability
6.1%3/10

6.1% margin — thin

Operating MarginProfitability
4.3%3/10

Operating margin of 4.3%

PEG RatioValuation
6.502/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.162/10

Distress zone — elevated risk

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 : UAL

The strongest argument for UAL centers on P/E Ratio, EPS Growth, Return on Equity. Revenue growth of 10.6% demonstrates continued momentum.

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 : UAL

The primary concerns for UAL are Profit Margin, Operating Margin, PEG Ratio. Debt-to-equity of 2.39 is elevated, increasing financial risk.

Key Dynamics to Monitor

AAL carries more volatility with a beta of 1.28 — 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.

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

Bottom Line

UAL scores higher overall (67/100 vs 47/100) and 10.6% revenue growth. AAL offers better value entry with a 72.3% margin of safety. Both earn "Strong 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.

United Airlines Holdings Inc

INDUSTRIALS · AIRLINES · USA

United Airlines Holdings, Inc. (formerly known as United Continental Holdings, Inc., UAL Corporation, Allegis Corporation and founded originally as UAL, Inc.) is a publicly traded airline holding company headquartered in the Willis Tower in Chicago. UAH owns and operates United Airlines, Inc.

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