WallStSmart

Alaska Air Group Inc (ALK)vsUnited Airlines Holdings Inc (UAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

United Airlines Holdings Inc generates 326% more annual revenue ($62.90B vs $14.76B). UAL leads profitability with a 5.6% profit margin vs -1.2%. ALK appears more attractively valued with a PEG of 1.20. UAL earns a higher WallStSmart Score of 57/100 (C).

ALK

Hold

47

out of 100

Grade: D+

Growth: 5.3Profit: 2.5Value: 7.0Quality: 3.5
Piotroski: 4/9Altman Z: 1.08

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

ALKUndervalued (+54.8%)

Margin of Safety

+54.8%

Fair Value

$127.27

Current Price

$52.05

$75.22 discount

UndervaluedFair: $127.27Overvalued
UALSignificantly Overvalued (-77.5%)

Margin of Safety

-77.5%

Fair Value

$68.36

Current Price

$132.76

$64.40 premium

UndervaluedFair: $68.36Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALK1 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

UAL4 strengths · Avg: 8.8/10
P/E RatioValuation
11.4x10/10

Attractively priced relative to earnings

Return on EquityProfitability
20.9%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.0%8/10

16.0% revenue growth

Areas to Watch

ALK4 concerns · Avg: 2.3/10
Return on EquityProfitability
2.0%3/10

ROE of 2.0% — below average capital efficiency

EPS GrowthGrowth
-68.3%2/10

Earnings declined 68.3%

Free Cash FlowQuality
$02/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.082/10

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 : 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, Return on Equity, Price/Book. Revenue growth of 16.0% demonstrates continued momentum.

Bear Case : ALK

The primary concerns for ALK are Return on Equity, EPS Growth, Free Cash Flow. Debt-to-equity of 2.08 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

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

ALK carries more volatility with a beta of 1.28 — expect wider price swings.

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

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

Bottom Line

UAL scores higher overall (57/100 vs 47/100) and 16.0% revenue growth. ALK offers better value entry with a 54.8% margin of safety. 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.

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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