AAL vs. BA: A Head-to-Head Stock Comparison

Company Overview

BA stands out with 153.22 billion USD in market value—about 20.67× AAL’s market cap of 7.41 billion USD.

With betas of 1.32 for AAL and 1.41 for BA, both show similar volatility profiles relative to the overall market.

Performance Comparison

This chart compares the performance of AAL and BA 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 BA based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

• BA shows a negative P/E of -13.30, highlighting a year of losses, whereas AAL at 10.81 trades on solid profitability.
• BA shows a negative forward PEG of -6.09, signaling expected earnings contraction, while AAL at 0.20 maintains analysts’ projections for stable or improved profits.
• Book value is underwater for both AAL (-1.64) and BA (-46.04), meaning liabilities exceed assets—signaling a critical solvency risk for both companies.
• BA reports a negative Price-to-Free Cash Flow ratio of -12.01, showing a cash flow shortfall that could threaten its operational sustainability, while AAL at 2.11 maintains positive cash flow.

Dividend Comparison

Neither AAL nor BA currently pays a dividend yield; this often indicates they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.

Financial Strength Metrics Comparison

This section dives into the financial resilience of AAL and BA, 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 BA at 1.23 comfortably covers its short-term obligations.
• Both AAL (quick ratio 0.42) and BA (quick ratio 0.37) fall below 0.8, meaning their most liquid assets—excluding inventory—aren’t enough to meet short-term obligations. This could force them to rely on receivables, inventory turn, or external financing.
• Both AAL (debt-to-equity ratio -8.12) and BA (-16.13) exhibit negative shareholder equity—assets fall short of liabilities—signaling serious balance-sheet stress.
• AAL meets its interest obligations (ratio 1.25). In stark contrast, BA’s negative ratio (-3.55) means its operating earnings (EBIT) don't cover basic operations, let alone interest, signaling serious financial trouble.