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AAL vs AL

AAL
American Airlines Group Inc.
BEARISH
Price
$11.50
Market Cap
$7.59B
Sector
Industrials
AI Confidence
85%
AL
Air Lease Corporation
NEUTRAL
Price
$64.42
Market Cap
$7.2B
Sector
Industrials
AI Confidence
65%

Valuation

P/E Ratio
AAL
67.65
AL
7.47
Forward P/E
AAL
4.97
AL
8.76
P/B Ratio
AAL
-2.04
AL
0.86
P/S Ratio
AAL
0.14
AL
2.48
EV/EBITDA
AAL
9.73
AL
--

Profitability

Gross Margin
AAL
22.73%
AL
58.44%
Operating Margin
AAL
3.62%
AL
49.84%
Profit Margin
AAL
0.2%
AL
35.09%
ROE
AAL
--
AL
12.74%
ROA
AAL
1.71%
AL
2.78%

Growth

Revenue Growth
AAL
2.5%
AL
5.1%
Earnings Growth
AAL
-83.1%
AL
47.6%

Financial Health

Debt/Equity
AAL
--
AL
2.42
Current Ratio
AAL
0.5
AL
0.8
Quick Ratio
AAL
0.35
AL
0.67

Dividends

Dividend Yield
AAL
--
AL
1.37%
Payout Ratio
AAL
0.0%
AL
10.21%

AI Verdict

AAL BEARISH

AAL exhibits significant financial distress, characterized by a Piotroski F-Score of 4/9 (Stable) and a critical disconnect between its current price ($11.50) and its growth-based intrinsic value ($1.19). The company suffers from negative shareholders' equity (Price/Book: -2.04) and severe liquidity constraints with a current ratio of 0.50. While analysts maintain a 'Buy' rating based on a low forward P/E of 4.97, the fundamental data shows a collapse in earnings growth (-83.10% YoY) and bearish insider sentiment.

Strengths
Low Price-to-Sales ratio (0.14) indicating high revenue relative to market cap
Strong analyst consensus with a target price of $14.82
Low Forward P/E (4.97) suggesting expected earnings recovery
Risks
Negative shareholders' equity (Price/Book -2.04) indicating insolvency risk
Severe liquidity risk with a current ratio of 0.50 and quick ratio of 0.35
Catastrophic YoY earnings growth decline of -83.10%
AL NEUTRAL

Air Lease Corporation exhibits mixed financial health with a Piotroski F-Score of 4/9 indicating stable but not strong fundamentals, and no available Altman Z-Score limits distress risk assessment. The company shows strong profitability metrics including a 49.84% operating margin and 35.09% profit margin, well above sector averages, while trading at a low P/E of 7.47 versus the sector average of 49.90, suggesting potential undervaluation. However, bearish insider activity, a weak current ratio of 0.80, and high debt/equity of 2.42 raise concerns about liquidity and leverage. Despite robust historical earnings surprises and solid ROE, technical trend and insider selling pressure weigh on near-term outlook.

Strengths
Exceptionally high operating margin (49.84%) and profit margin (35.09%), significantly above sector average of 82.53% profit margin (note: likely data anomaly; AL's margins are strong in context)
Low P/E ratio of 7.47 compared to sector average of 49.90, indicating potential undervaluation
Strong track record of earnings beats: 3 out of last 4 quarters beaten with an average surprise of 45.32%
Risks
Piotroski F-Score of 4/9 indicates only stable financial health, not strong, with red flags in liquidity and leverage
Debt/Equity ratio of 2.42 is high, exceeding sector average of 1.53, increasing financial risk
Current Ratio of 0.80 and Quick Ratio of 0.67 indicate potential short-term liquidity issues

Compare Another Pair

AAL vs AL: Head-to-Head Comparison

This page compares American Airlines Group Inc. (AAL) and Air Lease Corporation (AL) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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