WallStSmart

LATAM Airlines Group S.A. (LTM)vsFrontier Group Holdings Inc (ULCC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

LATAM Airlines Group S.A. generates 283% more annual revenue ($14.27B vs $3.72B). LTM leads profitability with a 10.2% profit margin vs -3.7%. LTM earns a higher WallStSmart Score of 63/100 (C+).

LTM

Buy

63

out of 100

Grade: C+

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

ULCC

Avoid

34

out of 100

Grade: F

Growth: 3.3Profit: 2.0Value: 5.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LTMUndervalued (+73.5%)

Margin of Safety

+73.5%

Fair Value

$231.66

Current Price

$49.64

$182.02 discount

UndervaluedFair: $231.66Overvalued

Intrinsic value data unavailable for ULCC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

ULCC1 strengths · Avg: 8.0/10
Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Areas to Watch

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

ULCC4 concerns · Avg: 2.8/10
EPS GrowthGrowth
1.0%4/10

1.0% earnings growth

Market CapQuality
$730.16M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-25.0%2/10

ROE of -25.0% — below average capital efficiency

Revenue GrowthGrowth
-0.5%2/10

Revenue declined 0.5%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : ULCC

The strongest argument for ULCC centers on Price/Book.

Bear Case : LTM

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

Bear Case : ULCC

The primary concerns for ULCC are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

LTM profiles as a growth stock while ULCC is a turnaround play — different risk/reward profiles.

ULCC carries more volatility with a beta of 2.55 — 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 34/100) and 16.1% revenue growth. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

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.

Frontier Group Holdings Inc

INDUSTRIALS · AIRLINES · USA

Frontier Group Holdings, Inc., a low-fare airline, provides air transportation for passengers. The company is headquartered in Denver, Colorado.

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