Alaska Air Group Inc (ALK)vsUnited Airlines Holdings Inc (UAL)
ALK
Alaska Air Group Inc
$36.78
-3.94%
INDUSTRIALS · Cap: $4.03B
UAL
United Airlines Holdings Inc
$107.21
-1.86%
INDUSTRIALS · Cap: $33.60B
Smart Verdict
WallStSmart Research — data-driven comparison
United Airlines Holdings Inc generates 328% more annual revenue ($65.55B vs $15.30B). UAL leads profitability with a 5.5% profit margin vs -2.6%. ALK appears more attractively valued with a PEG of 1.20. UAL earns a higher WallStSmart Score of 64/100 (C+).
ALK
Buy50
out of 100
Grade: C-
UAL
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+55.3%
Fair Value
$128.74
Current Price
$36.78
$91.96 discount
Margin of Safety
-46.4%
Fair Value
$71.85
Current Price
$107.21
$35.36 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Attractively priced relative to earnings
Every $100 of equity generates 20 in profit
Reasonable price relative to book value
17.4% revenue growth
Areas to Watch
ROE of 2.0% — below average capital efficiency
Operating margin of 2.5%
Earnings declined 68.3%
Negative free cash flow — burning cash
5.5% margin — thin
Elevated debt levels
Expensive relative to growth rate
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : ALK
The strongest argument for ALK centers on Price/Book. Revenue growth of 14.4% demonstrates continued momentum. 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, Return on Equity, Price/Book. Revenue growth of 17.4% demonstrates continued momentum.
Bear Case : ALK
The primary concerns for ALK are Return on Equity, Operating Margin, EPS Growth. Debt-to-equity of 2.07 is elevated, increasing financial risk.
Bear Case : UAL
The primary concerns for UAL are Profit Margin, Debt/Equity, PEG Ratio. Debt-to-equity of 1.93 is elevated, increasing financial risk.
Key Dynamics to Monitor
ALK profiles as a turnaround stock while UAL is a growth play — different risk/reward profiles.
ALK carries more volatility with a beta of 1.33 — expect wider price swings.
UAL is growing revenue faster at 17.4% — sustainability is the question.
ALK generates stronger free cash flow (-293M), providing more financial flexibility.
Bottom Line
UAL scores higher overall (64/100 vs 50/100) and 17.4% revenue growth. ALK offers better value entry with a 55.3% 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.
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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