WallStSmart

Allegiant Travel Company (ALGT)vsUnited Airlines Holdings Inc (UAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

United Airlines Holdings Inc generates 2283% more annual revenue ($62.90B vs $2.64B). UAL leads profitability with a 5.6% profit margin vs -1.3%. ALGT appears more attractively valued with a PEG of 0.85. UAL earns a higher WallStSmart Score of 57/100 (C).

ALGT

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 3.5Value: 7.0Quality: 4.0
Piotroski: 4/9Altman Z: 1.18

UAL

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 6.0Value: 4.7Quality: 4.0
Piotroski: 6/9Altman Z: 1.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALGTUndervalued (+16.9%)

Margin of Safety

+16.9%

Fair Value

$131.53

Current Price

$95.69

$35.84 discount

UndervaluedFair: $131.53Overvalued
UALSignificantly Overvalued (-76.4%)

Margin of Safety

-76.4%

Fair Value

$68.36

Current Price

$123.56

$55.20 premium

UndervaluedFair: $68.36Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALGT3 strengths · Avg: 8.0/10
PEG RatioValuation
0.858/10

Growing faster than its price suggests

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
32.6%8/10

Earnings expanding 32.6% YoY

UAL4 strengths · Avg: 8.8/10
P/E RatioValuation
10.8x10/10

Attractively priced relative to earnings

Return on EquityProfitability
20.9%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.0%8/10

16.0% revenue growth

Areas to Watch

ALGT4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Debt/EquityHealth
1.693/10

Elevated debt levels

Return on EquityProfitability
-3.1%2/10

ROE of -3.1% — below average capital efficiency

Altman Z-ScoreHealth
1.182/10

Distress zone — elevated risk

UAL4 concerns · Avg: 2.3/10
Profit MarginProfitability
5.6%3/10

5.6% margin — thin

PEG RatioValuation
6.502/10

Expensive relative to growth rate

EPS GrowthGrowth
-17.2%2/10

Earnings declined 17.2%

Altman Z-ScoreHealth
1.162/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ALGT

The strongest argument for ALGT centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.85 suggests the stock is reasonably priced for its growth.

Bull Case : UAL

The strongest argument for UAL centers on P/E Ratio, Return on Equity, Price/Book. Revenue growth of 16.0% demonstrates continued momentum.

Bear Case : ALGT

The primary concerns for ALGT are Revenue Growth, Debt/Equity, Return on Equity. Debt-to-equity of 1.69 is elevated, increasing financial risk.

Bear Case : UAL

The primary concerns for UAL are Profit Margin, PEG Ratio, EPS Growth. Debt-to-equity of 2.02 is elevated, increasing financial risk.

Key Dynamics to Monitor

ALGT profiles as a turnaround stock while UAL is a growth play — different risk/reward profiles.

ALGT carries more volatility with a beta of 1.50 — expect wider price swings.

UAL is growing revenue faster at 16.0% — sustainability is the question.

UAL generates stronger free cash flow (266M), providing more financial flexibility.

Bottom Line

UAL scores higher overall (57/100 vs 56/100) and 16.0% revenue growth. ALGT offers better value entry with a 16.9% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Allegiant Travel Company

INDUSTRIALS · AIRLINES · USA

Allegiant Travel Company, a leisure travel company, provides travel products and services to residents of underserved cities in the United States. The company is headquartered in Las Vegas, Nevada.

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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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