AAL vs. BA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AAL and BA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
BA’s market capitalization of 162.80 billion USD is significantly greater than AAL’s 7.71 billion USD, highlighting its more substantial market valuation.
With betas of 1.38 for AAL and 1.42 for BA, both stocks show similar sensitivity to overall market movements.
| Symbol | AAL | BA |
|---|---|---|
| Company Name | American Airlines Group Inc. | The Boeing Company |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Airlines, Airports & Air Services | Aerospace & Defense |
| CEO | Robert D. Isom Jr. | Robert K. Ortberg |
| Price | 11.69 USD | 215.92 USD |
| Market Cap | 7.71 billion USD | 162.80 billion USD |
| Beta | 1.38 | 1.42 |
| Exchange | NASDAQ | NYSE |
| IPO Date | September 27, 2005 | January 2, 1962 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AAL and BA by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AAL
-15.15%
Airlines, Airports & Air Services Industry
- Max
- 42.21%
- Q3
- 26.98%
- Median
- 13.01%
- Q1
- 0.37%
- Min
- -17.14%
AAL has a negative Return on Equity of -15.15%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
BA
94.43%
Aerospace & Defense Industry
- Max
- 42.57%
- Q3
- 16.67%
- Median
- 8.39%
- Q1
- -0.77%
- Min
- -23.36%
BA’s Return on Equity of 94.43% is exceptionally high, placing it well beyond the typical range for the Aerospace & Defense industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Return on Invested Capital
AAL
4.12%
Airlines, Airports & Air Services Industry
- Max
- 17.34%
- Q3
- 13.78%
- Median
- 4.53%
- Q1
- 1.05%
- Min
- -13.54%
AAL’s Return on Invested Capital of 4.12% is in line with the norm for the Airlines, Airports & Air Services industry, reflecting a standard level of efficiency in generating profits from its capital base.
BA
-16.36%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.86%
- Median
- 5.47%
- Q1
- -5.60%
- Min
- -22.46%
BA has a negative Return on Invested Capital of -16.36%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
Net Profit Margin
AAL
1.26%
Airlines, Airports & Air Services Industry
- Max
- 24.88%
- Q3
- 9.50%
- Median
- 3.91%
- Q1
- -1.02%
- Min
- -10.56%
AAL’s Net Profit Margin of 1.26% is aligned with the median group of its peers in the Airlines, Airports & Air Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
BA
-16.58%
Aerospace & Defense Industry
- Max
- 22.67%
- Q3
- 8.04%
- Median
- 4.95%
- Q1
- -5.07%
- Min
- -16.58%
BA has a negative Net Profit Margin of -16.58%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
Operating Profit Margin
AAL
4.31%
Airlines, Airports & Air Services Industry
- Max
- 22.38%
- Q3
- 14.22%
- Median
- 9.66%
- Q1
- -0.09%
- Min
- -12.58%
AAL’s Operating Profit Margin of 4.31% is around the midpoint for the Airlines, Airports & Air Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
BA
-14.63%
Aerospace & Defense Industry
- Max
- 22.01%
- Q3
- 11.49%
- Median
- 8.96%
- Q1
- 3.77%
- Min
- -4.96%
BA has a negative Operating Profit Margin of -14.63%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | AAL | BA |
|---|---|---|
| Return on Equity (TTM) | -15.15% | 94.43% |
| Return on Assets (TTM) | 1.09% | -7.36% |
| Return on Invested Capital (TTM) | 4.12% | -16.36% |
| Net Profit Margin (TTM) | 1.26% | -16.58% |
| Operating Profit Margin (TTM) | 4.31% | -14.63% |
| Gross Profit Margin (TTM) | 23.28% | -2.09% |
Financial Strength
Current Ratio
AAL
0.52
Airlines, Airports & Air Services Industry
- Max
- 1.77
- Q3
- 1.68
- Median
- 0.77
- Q1
- 0.62
- Min
- 0.32
AAL’s Current Ratio of 0.52 falls into the lower quartile for the Airlines, Airports & Air Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
BA
1.23
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.36
- Median
- 2.16
- Q1
- 1.20
- Min
- 0.41
BA’s Current Ratio of 1.23 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
AAL
-8.12
Airlines, Airports & Air Services Industry
- Max
- 3.85
- Q3
- 2.92
- Median
- 1.02
- Q1
- 0.43
- Min
- 0.04
AAL has a Debt-to-Equity Ratio of -8.12, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.
BA
-16.13
Aerospace & Defense Industry
- Max
- 1.20
- Q3
- 0.73
- Median
- 0.51
- Q1
- 0.09
- Min
- 0.00
BA has a Debt-to-Equity Ratio of -16.13, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.
Interest Coverage Ratio
AAL
1.25
Airlines, Airports & Air Services Industry
- Max
- 8.60
- Q3
- 6.00
- Median
- 4.19
- Q1
- 1.03
- Min
- -1.40
AAL’s Interest Coverage Ratio of 1.25 is positioned comfortably within the norm for the Airlines, Airports & Air Services industry, indicating a standard and healthy capacity to cover its interest payments.
BA
-3.55
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.38
- Median
- 2.95
- Q1
- 1.68
- Min
- -6.68
BA has a negative Interest Coverage Ratio of -3.55. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | AAL | BA |
|---|---|---|
| Current Ratio (TTM) | 0.52 | 1.23 |
| Quick Ratio (TTM) | 0.42 | 0.37 |
| Debt-to-Equity Ratio (TTM) | -8.12 | -16.13 |
| Debt-to-Asset Ratio (TTM) | 0.58 | 0.34 |
| Net Debt-to-EBITDA Ratio (TTM) | 8.51 | -6.18 |
| Interest Coverage Ratio (TTM) | 1.25 | -3.55 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AAL and BA. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AAL
0.00%
Airlines, Airports & Air Services Industry
- Max
- 162.17%
- Q3
- 2.10%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AAL currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
BA
0.00%
Aerospace & Defense Industry
- Max
- 6.00%
- Q3
- 0.66%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
BA currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio
AAL
0.00%
Airlines, Airports & Air Services Industry
- Max
- 106.87%
- Q3
- 15.62%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AAL has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
BA
-0.63%
Aerospace & Defense Industry
- Max
- 172.02%
- Q3
- 32.47%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
BA has a negative Dividend Payout Ratio of -0.63%. This typically means the company paid a dividend despite reporting a net loss, a situation that may signal financial instability.
Dividend at a Glance
| Symbol | AAL | BA |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | -0.63% |
Valuation
Price-to-Earnings Ratio
AAL
11.24
Airlines, Airports & Air Services Industry
- Max
- 24.07
- Q3
- 18.40
- Median
- 12.44
- Q1
- 11.24
- Min
- 7.21
AAL’s P/E Ratio of 11.24 is within the middle range for the Airlines, Airports & Air Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
BA
-14.13
Aerospace & Defense Industry
- Max
- 75.34
- Q3
- 54.40
- Median
- 38.63
- Q1
- 26.10
- Min
- 16.44
BA has a negative P/E Ratio of -14.13. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
Forward P/E to Growth Ratio
AAL
0.21
Airlines, Airports & Air Services Industry
- Max
- 1.38
- Q3
- 1.07
- Median
- 0.61
- Q1
- 0.32
- Min
- 0.03
The Forward PEG Ratio is often not a primary valuation metric in the Airlines, Airports & Air Services industry.
BA
-6.47
Aerospace & Defense Industry
- Max
- 10.68
- Q3
- 5.36
- Median
- 2.31
- Q1
- 1.47
- Min
- 0.01
BA has a negative Forward PEG Ratio of -6.47. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
Price-to-Sales Ratio
AAL
0.14
Airlines, Airports & Air Services Industry
- Max
- 1.84
- Q3
- 1.69
- Median
- 0.98
- Q1
- 0.45
- Min
- 0.14
In the lower quartile for the Airlines, Airports & Air Services industry, AAL’s P/S Ratio of 0.14 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
BA
2.34
Aerospace & Defense Industry
- Max
- 19.34
- Q3
- 9.54
- Median
- 2.71
- Q1
- 1.59
- Min
- 0.35
BA’s P/S Ratio of 2.34 aligns with the market consensus for the Aerospace & Defense industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
AAL
-1.71
Airlines, Airports & Air Services Industry
- Max
- 12.86
- Q3
- 8.15
- Median
- 2.07
- Q1
- 1.50
- Min
- 0.62
AAL has a negative P/B Ratio of -1.71, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.
BA
-48.92
Aerospace & Defense Industry
- Max
- 16.08
- Q3
- 8.12
- Median
- 4.12
- Q1
- 2.69
- Min
- 0.69
BA has a negative P/B Ratio of -48.92, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.
Valuation at a Glance
| Symbol | AAL | BA |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 11.24 | -14.13 |
| Forward PEG Ratio (TTM) | 0.21 | -6.47 |
| Price-to-Sales Ratio (P/S, TTM) | 0.14 | 2.34 |
| Price-to-Book Ratio (P/B, TTM) | -1.71 | -48.92 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 2.19 | -12.76 |
| EV-to-EBITDA (TTM) | 10.34 | -29.33 |
| EV-to-Sales (TTM) | 0.80 | 2.97 |