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AAL vs AWI

AAL
American Airlines Group Inc.
BEARISH
Price
$11.50
Market Cap
$7.59B
Sector
Industrials
AI Confidence
85%
AWI
Armstrong World Industries, Inc.
NEUTRAL
Price
$187.28
Market Cap
$8.1B
Sector
Industrials
AI Confidence
72%

Valuation

P/E Ratio
AAL
67.65
AWI
27.1
Forward P/E
AAL
4.97
AWI
22.2
P/B Ratio
AAL
-2.04
AWI
9.09
P/S Ratio
AAL
0.14
AWI
5.06
EV/EBITDA
AAL
9.73
AWI
19.68

Profitability

Gross Margin
AAL
22.73%
AWI
40.5%
Operating Margin
AAL
3.62%
AWI
20.93%
Profit Margin
AAL
0.2%
AWI
19.09%
ROE
AAL
--
AWI
38.03%
ROA
AAL
1.71%
AWI
10.62%

Growth

Revenue Growth
AAL
2.5%
AWI
10.0%
Earnings Growth
AAL
-83.1%
AWI
13.1%

Financial Health

Debt/Equity
AAL
--
AWI
0.56
Current Ratio
AAL
0.5
AWI
1.52
Quick Ratio
AAL
0.35
AWI
0.96

Dividends

Dividend Yield
AAL
--
AWI
0.67%
Payout Ratio
AAL
0.0%
AWI
17.68%

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%
AWI NEUTRAL

AWI's deterministic health score is concerning with a Piotroski F-Score of 4/9, indicating marginal financial stability, while the absence of an Altman Z-Score prevents a full distress risk assessment. Despite strong profitability metrics like a 38.03% ROE and solid earnings growth, elevated valuation multiples and weak insider sentiment weigh on the outlook. The stock trades above its Graham Number of $56.59 and near its intrinsic value estimate of $184.15, suggesting limited margin of safety. Analysts maintain a 'buy' recommendation with a $211.10 target, implying upside, but recent insider selling and deteriorating short-term earnings momentum raise caution.

Strengths
Exceptional return on equity (38.03%) indicating efficient use of shareholder capital
Strong operating margin (20.93%) and gross margin (40.50%) reflecting pricing power and cost control
Solid year-over-year earnings growth (13.3%) and revenue growth (10.00%)
Risks
Low Piotroski F-Score (4/9) signals weak financial health and potential operational inefficiencies
High valuation with P/E of 27.10 and Price/Book of 9.09, exceeding sector averages
Recent Q/Q EPS decline of -1.9% indicating possible growth deceleration

Compare Another Pair

AAL vs AWI: Head-to-Head Comparison

This page compares American Airlines Group Inc. (AAL) and Armstrong World Industries, Inc. (AWI) 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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