AAL vs. ADP: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AAL and ADP, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.
Company Overview
ADP stands out with 130.96 billion USD in market value—about 17.67× AAL’s market cap of 7.41 billion USD.
AAL’s beta of 1.32 points to much larger expected swings compared to ADP’s calmer 0.78, suggesting both higher upside and downside potential.
| Symbol | AAL | ADP |
|---|---|---|
| Company Name | American Airlines Group Inc. | Automatic Data Processing, Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Airlines, Airports & Air Services | Staffing & Employment Services |
| CEO | Mr. Robert D. Isom Jr. | Ms. Maria Black |
| Price | 11.24 USD | 322.63 USD |
| Market Cap | 7.41 billion USD | 130.96 billion USD |
| Beta | 1.32 | 0.78 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | September 27, 2005 | March 17, 1980 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AAL and ADP over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Hover over the lines to see the investment’s value and total return (%) at specific dates.
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
The section examines key financial ratios to assess the valuation of AAL and ADP based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- AAL has a negative P/B ratio of -1.64, indicating its liabilities exceed assets (negative equity). ADP, with a P/B of 22.42, maintains positive shareholder equity.
| Symbol | AAL | ADP |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 10.81 | 32.83 |
| Forward PEG Ratio (TTM) | 0.20 | 3.72 |
| Price-to-Sales Ratio (P/S, TTM) | 0.14 | 6.48 |
| Price-to-Book Ratio (P/B, TTM) | -1.64 | 22.42 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 2.11 | 28.97 |
| EV-to-EBITDA (TTM) | 10.27 | 21.45 |
| EV-to-Sales (TTM) | 0.80 | 6.56 |
| EV-to-Free Cash Flow (TTM) | 12.27 | 29.32 |
Dividend Comparison
AAL offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while ADP provides a 1.82% dividend yield, giving investors a steady income stream.
| Symbol | AAL | ADP |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.82% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AAL and ADP, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- AAL’s current ratio of 0.52 signals a possible liquidity squeeze, while ADP at 1.02 comfortably covers its short-term obligations.
- AAL’s quick ratio of 0.42 suggests it may struggle to cover immediate liabilities without selling inventory or raising cash, whereas ADP at 1.02 maintains a comfortable buffer of liquid assets.
- AAL has negative equity (debt-to-equity ratio -8.12), an unusual warning sign, while ADP at 0.73 maintains a conventional debt-to-equity balance.
| Symbol | AAL | ADP |
|---|---|---|
| Current Ratio (TTM) | 0.52 | 1.02 |
| Quick Ratio (TTM) | 0.42 | 1.02 |
| Debt-to-Equity Ratio (TTM) | -8.12 | 0.73 |
| Debt-to-Assets Ratio (TTM) | 0.58 | 0.08 |
| Interest Coverage Ratio (TTM) | 1.25 | 7.90 |