WallStSmart

Alaska Air Group Inc (ALK)vsLATAM Airlines Group S.A. (LTM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

LATAM Airlines Group S.A. generates 0% more annual revenue ($14.27B vs $14.24B). LTM leads profitability with a 10.2% profit margin vs 0.7%. ALK appears more attractively valued with a PEG of 1.20. LTM earns a higher WallStSmart Score of 63/100 (C+).

ALK

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 4.0Value: 7.3Quality: 4.3
Piotroski: 4/9Altman Z: 1.08

LTM

Buy

63

out of 100

Grade: C+

Growth: 8.7Profit: 8.0Value: 7.3Quality: 4.3
Piotroski: 5/9Altman Z: 1.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALKSignificantly Overvalued (-919.5%)

Margin of Safety

-919.5%

Fair Value

$5.64

Current Price

$39.28

$33.64 premium

UndervaluedFair: $5.64Overvalued
LTMUndervalued (+73.5%)

Margin of Safety

+73.5%

Fair Value

$231.66

Current Price

$49.64

$182.02 discount

UndervaluedFair: $231.66Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALK1 strengths · Avg: 10.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

LTM4 strengths · Avg: 9.5/10
P/E RatioValuation
9.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
142.9%10/10

Every $100 of equity generates 143 in profit

EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Revenue GrowthGrowth
16.1%8/10

16.1% revenue growth

Areas to Watch

ALK4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.8%4/10

2.8% revenue growth

Return on EquityProfitability
2.4%3/10

ROE of 2.4% — below average capital efficiency

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Operating MarginProfitability
3.2%3/10

Operating margin of 3.2%

LTM2 concerns · Avg: 2.0/10
PEG RatioValuation
2.582/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.392/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ALK

The strongest argument for ALK centers on Price/Book. PEG of 1.20 suggests the stock is reasonably priced for its growth.

Bull Case : LTM

The strongest argument for LTM centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 16.1% demonstrates continued momentum.

Bear Case : ALK

The primary concerns for ALK are Revenue Growth, Return on Equity, Profit Margin. A P/E of 46.4x leaves little room for execution misses. Thin 0.7% margins leave little buffer for downturns.

Bear Case : LTM

The primary concerns for LTM are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

ALK profiles as a value stock while LTM is a growth play — different risk/reward profiles.

ALK carries more volatility with a beta of 1.16 — expect wider price swings.

LTM is growing revenue faster at 16.1% — sustainability is the question.

LTM generates stronger free cash flow (571M), providing more financial flexibility.

Bottom Line

LTM scores higher overall (63/100 vs 49/100) and 16.1% revenue growth. 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.

Alaska Air Group Inc

INDUSTRIALS · AIRLINES · USA

Alaska Air Group is an airline holding company based in SeaTac, Washington, United States.

LATAM Airlines Group S.A.

INDUSTRIALS · AIRLINES · USA

LATAM Airlines Group SA, provides passenger and cargo air transport services in Peru, Argentina, the United States, Europe, Colombia, Brazil, Ecuador, Chile, Asia Pacific and the rest of Latin America.

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