Alaska Air Group Inc (ALK)vsUnited Airlines Holdings Inc (UAL)
ALK
Alaska Air Group Inc
$42.82
+0.30%
INDUSTRIALS · Cap: $5.27B
UAL
United Airlines Holdings Inc
$104.94
+2.15%
INDUSTRIALS · Cap: $37.49B
Smart Verdict
WallStSmart Research — data-driven comparison
United Airlines Holdings Inc generates 320% more annual revenue ($60.47B vs $14.40B). UAL leads profitability with a 6.1% profit margin vs 0.5%. ALK appears more attractively valued with a PEG of 1.20. UAL earns a higher WallStSmart Score of 67/100 (B-).
ALK
Buy50
out of 100
Grade: C-
UAL
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+54.2%
Fair Value
$125.55
Current Price
$42.82
$82.73 discount
Margin of Safety
-81.3%
Fair Value
$65.25
Current Price
$104.94
$39.69 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Attractively priced relative to earnings
Earnings expanding 84.5% YoY
Every $100 of equity generates 23 in profit
Reasonable price relative to book value
Generating 3.1B in free cash flow
Areas to Watch
ROE of 2.0% — below average capital efficiency
0.5% margin — thin
Elevated debt levels
Premium valuation, high expectations priced in
6.1% margin — thin
Operating margin of 4.3%
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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 : 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 : ALK
The primary concerns for ALK are Return on Equity, Profit Margin, Debt/Equity. A P/E of 96.6x leaves little room for execution misses. Debt-to-equity of 1.79 is elevated, increasing financial risk.
Bear Case : UAL
The primary concerns for UAL are Profit Margin, Operating Margin, Debt/Equity. Debt-to-equity of 1.95 is elevated, increasing financial risk.
Key Dynamics to Monitor
ALK carries more volatility with a beta of 1.31 — expect wider price swings.
UAL is growing revenue faster at 10.6% — sustainability is the question.
UAL generates stronger free cash flow (3.1B), providing more financial flexibility.
Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
UAL scores higher overall (67/100 vs 50/100) and 10.6% revenue growth. ALK offers better value entry with a 54.2% margin of safety. Both earn "Strong 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.
Alaska Air Group Inc
INDUSTRIALS · AIRLINES · USA
Alaska Air Group is an airline holding company based in SeaTac, Washington, United States.
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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