Which stock is better: AAL or LUV?

The comparison between American Airlines Group Inc. (AAL) and Southwest Airlines Co. (LUV) depends on your investment criteria. Compare valuation, profitability, growth, and risk metrics to determine which aligns better with your investment goals.

What is the P/E ratio of AAL vs LUV?

AAL has a P/E ratio of 66.11, while LUV has a P/E ratio of 50.10. A lower P/E ratio may indicate a more attractive valuation.

What is the market cap difference between AAL and LUV?

AAL has a market cap of approximately 6.9B, while LUV has a market cap of approximately 20.8B.

AAL vs LUV

Name: AAL Stock
Brand: American Airlines Group Inc.
Price: 10.49 USD
Availability: InStock

In the past 12 months, LUV returned +25% while AAL lost 7%.

Valuation Growth Profitability Balance Sheet Performance

AAL

American Airlines Group Inc.

$10.49

-27.2%(1M)

Market Cap6.9B

Industrials

Airlines, Airports & Air Services

USA

P/E Ratio66.11

ROE-2.8%

P/B Ratio-1.97

Dividend Yield0.0%

LUV

Southwest Airlines Co.

$40.23

-25.9%(1M)

Market Cap20.8B

Industrials

Airlines, Airports & Air Services

USA

P/E Ratio50.10

ROE5.3%

P/B Ratio2.77

Dividend Yield1.7%

Performance Comparison

Historical returns across multiple timeframes

LUV leads 8/8

AAL

American Airlines Group Inc.

-7.3%

1Y Return

LUV

Southwest Airlines Co.

+25.2%

1Y Return

AAL

LUV

Short Term

1M-6M

-1.0%

Medium Term

YTD-1Y

+11.3%

Long Term

3Y-10Y

-3.5%

Valuation

Compare price multiples and valuation ratios

AAL: 3LUV: 2

Metric	AAL	LUV	Winner
P/E Ratio Price to earnings ratio	66.11	50.10	LUV
Forward P/E Forward price to earnings ratio	0.00	0.00	Tie
P/S Ratio Price to sales ratio	0.13	0.79	AAL
P/B Ratio Price to book ratio	-1.97	2.77	AAL
P/FCF Ratio Price to free cash flow ratio	-10.79	-26.68	LUV
EV/EBITDA Enterprise value to EBITDA	10.71	10.93	AAL
PEG Ratio Price/earnings to growth ratio	0.00	0.00	Tie

Profitability

Compare profit margins and returns on capital

AAL: 3LUV: 3

Metric	AAL	LUV	Winner
Gross Margin Gross profit margin	28.4%	17.4%	AAL
Operating Margin Operating profit margin	2.9%	1.5%	AAL
Net Margin Net profit margin	0.2%	1.6%	LUV
ROE Return on equity	-2.8%	5.3%	LUV
ROA Return on assets	0.2%	1.5%	LUV
ROIC Return on invested capital	2.2%	1.8%	AAL

Growth

Compare revenue and earnings growth rates

AAL: 1LUV: 4

Metric	AAL	LUV	Winner
Revenue Growth (YoY) Year-over-year revenue growth	0.8%	2.1%	LUV
Revenue Growth (3Y) 3-year revenue CAGR	3.7%	5.6%	LUV
Revenue Growth (5Y) 5-year revenue CAGR	25.8%	25.4%	AAL
EPS Growth (YoY) Year-over-year EPS growth	-86.3%	5.3%	LUV
EPS Growth (3Y) 3-year EPS CAGR	-3.6%	-3.2%	LUV
EPS Growth (5Y) 5-year EPS CAGR	0.0%	0.0%	Tie

Balance Sheet & Risk

Compare financial stability and debt levels

AAL: 1LUV: 4

Metric	AAL	LUV	Winner
Debt/Equity Debt to equity ratio	-9.65	0.75	AAL
Current Ratio Current assets to current liabilities	0.50	0.52	LUV
Quick Ratio Quick assets to current liabilities	0.38	0.45	LUV
Interest Coverage EBIT to interest expense	0.93	3.75	LUV
Beta Stock volatility vs market	1.19	1.09	LUV

Summary

LUV wins 2-1

Valuation

AAL

Profitability

Tie

Growth

LUV

Balance Sheet

LUV

AAL is more attractively valued. LUV demonstrates better growth. LUV has a stronger balance sheet.

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