AAL vs. CAT: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AAL and CAT, 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
CAT stands out with 161.09 billion USD in market value—about 21.73× AAL’s market cap of 7.41 billion USD.
With betas of 1.32 for AAL and 1.35 for CAT, both show similar volatility profiles relative to the overall market.
| Symbol | AAL | CAT |
|---|---|---|
| Company Name | American Airlines Group Inc. | Caterpillar Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Airlines, Airports & Air Services | Agricultural - Machinery |
| CEO | Mr. Robert D. Isom Jr. | Mr. Joseph E. Creed CPA |
| Price | 11.24 USD | 342.51 USD |
| Market Cap | 7.41 billion USD | 161.09 billion USD |
| Beta | 1.32 | 1.35 |
| Exchange | NASDAQ | NYSE |
| IPO Date | September 27, 2005 | December 2, 1929 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AAL and CAT 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 CAT 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). CAT, with a P/B of 9.00, maintains positive shareholder equity.
| Symbol | AAL | CAT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 10.81 | 20.50 |
| Forward PEG Ratio (TTM) | 0.20 | 2.45 |
| Price-to-Sales Ratio (P/S, TTM) | 0.14 | 2.55 |
| Price-to-Book Ratio (P/B, TTM) | -1.64 | 9.00 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 2.11 | 18.76 |
| EV-to-EBITDA (TTM) | 10.27 | 13.24 |
| EV-to-Sales (TTM) | 0.80 | 3.10 |
| EV-to-Free Cash Flow (TTM) | 12.27 | 22.84 |
Dividend Comparison
AAL offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while CAT provides a 1.65% dividend yield, giving investors a steady income stream.
| Symbol | AAL | CAT |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.65% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AAL and CAT, 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 CAT at 1.32 comfortably covers its short-term obligations.
- Both AAL (quick ratio 0.42) and CAT (quick ratio 0.77) 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.
- AAL has negative equity (debt-to-equity ratio -8.12), an unusual warning sign, while CAT at 2.14 maintains a conventional debt-to-equity balance.
| Symbol | AAL | CAT |
|---|---|---|
| Current Ratio (TTM) | 0.52 | 1.32 |
| Quick Ratio (TTM) | 0.42 | 0.77 |
| Debt-to-Equity Ratio (TTM) | -8.12 | 2.14 |
| Debt-to-Assets Ratio (TTM) | 0.58 | 0.45 |
| Interest Coverage Ratio (TTM) | 1.25 | 25.55 |