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 47.92, while LUV has a P/E ratio of 26.18. 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 9.7B, while LUV has a market cap of approximately 21B.

AAL vs LUV

Name: AAL Stock
Brand: American Airlines Group Inc.
Price: 14.64 USD
Availability: InStock

In the past 12 months, AAL returned +28% while LUV gained 27%.

Valuation Growth Profitability Balance Sheet Performance

AAL

American Airlines Group Inc.

$14.64

29.4%(1M)

Market Cap9.7B

Industrials

Airlines, Airports & Air Services

USA

P/E Ratio47.92

ROE-5.2%

P/B Ratio-2.37

Dividend Yield0.0%

LUV

Southwest Airlines Co.

$42.95

15.4%(1M)

Market Cap21B

Industrials

Airlines, Airports & Air Services

USA

P/E Ratio26.18

ROE10.7%

P/B Ratio3.11

Dividend Yield1.7%

Performance Comparison

Historical returns across multiple timeframes

LUV leads 5/8

AAL

American Airlines Group Inc.

+28.4%

1Y Return

LUV

Southwest Airlines Co.

+27.4%

1Y Return

AAL

LUV

Short Term

1M-6M

+15.2%

Medium Term

YTD-1Y

+15.7%

Long Term

3Y-10Y

+5.1%

Valuation

Compare price multiples and valuation ratios

AAL: 2LUV: 3

Metric	AAL	LUV	Winner
P/E Ratio Price to earnings ratio	47.92	26.18	LUV
Forward P/E Forward price to earnings ratio	0.00	0.00	Tie
P/S Ratio Price to sales ratio	0.17	0.73	AAL
P/B Ratio Price to book ratio	-2.37	3.11	AAL
P/FCF Ratio Price to free cash flow ratio	8.80	-52.35	LUV
EV/EBITDA Enterprise value to EBITDA	10.50	8.99	LUV
PEG Ratio Price/earnings to growth ratio	0.00	0.00	Tie

Profitability

Compare profit margins and returns on capital

AAL: 1LUV: 5

Metric	AAL	LUV	Winner
Gross Margin Gross profit margin	21.8%	16.5%	AAL
Operating Margin Operating profit margin	3.0%	3.4%	LUV
Net Margin Net profit margin	0.4%	2.8%	LUV
ROE Return on equity	-5.2%	10.7%	LUV
ROA Return on assets	0.3%	2.8%	LUV
ROIC Return on invested capital	2.3%	4.3%	LUV

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: 2LUV: 3

Metric	AAL	LUV	Winner
Debt/Equity Debt to equity ratio	-8.56	0.93	AAL
Current Ratio Current assets to current liabilities	0.49	0.48	AAL
Quick Ratio Quick assets to current liabilities	0.38	0.41	LUV
Interest Coverage EBIT to interest expense	1.91	8.11	LUV
Beta Stock volatility vs market	1.28	1.11	LUV

Summary

LUV wins 4-0

Valuation

LUV

Profitability

LUV

Growth

LUV

Balance Sheet

LUV

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

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