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

Updated on November 22, 2025

Here’s a clear look at AAL and CAT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Symbol	AAL	CAT
Company Name	American Airlines Group Inc.	Caterpillar Inc.
Country	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry	Passenger Airlines	Machinery
Market Capitalization	8.31 billion USD	262.89 billion USD
Exchange	NasdaqGS	NYSE
Listing Date	September 27, 2005	January 2, 1962
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of AAL and CAT 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.

AAL vs. CAT: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	AAL	CAT
5-Day Price Return	-4.13%	-2.95%
13-Week Price Return	-3.11%	35.86%
26-Week Price Return	3.74%	57.15%
52-Week Price Return	-8.92%	43.13%
Month-to-Date Return	-2.82%	-4.02%
Year-to-Date Return	-26.79%	52.73%
10-Day Avg. Volume	52.31M	2.54M
3-Month Avg. Volume	70.06M	2.93M
3-Month Volatility	44.95%	35.47%
Beta	1.27	1.58

Profitability

Return on Equity (TTM)

AAL

265.62%

Passenger Airlines Industry

Max: 51.60%
Q3: 26.80%
Median: 15.05%
Q1: 3.96%
Min: -19.21%

AAL’s Return on Equity of 265.62% is exceptionally high, placing it well beyond the typical range for the Passenger Airlines industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

CAT

48.25%

Machinery Industry

Max: 30.85%
Q3: 19.99%
Median: 12.37%
Q1: 8.44%
Min: -7.69%

CAT’s Return on Equity of 48.25% is exceptionally high, placing it well beyond the typical range for the Machinery industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

AAL vs. CAT: A comparison of their Return on Equity (TTM) against their respective Passenger Airlines and Machinery industry benchmarks.

Net Profit Margin (TTM)

AAL

1.11%

Passenger Airlines Industry

Max: 18.35%
Q3: 8.99%
Median: 6.30%
Q1: 2.19%
Min: -5.16%

Falling into the lower quartile for the Passenger Airlines industry, AAL’s Net Profit Margin of 1.11% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

CAT

14.34%

Machinery Industry

Max: 19.28%
Q3: 10.99%
Median: 7.89%
Q1: 5.16%
Min: -1.46%

A Net Profit Margin of 14.34% places CAT in the upper quartile for the Machinery industry, signifying strong profitability and more effective cost management than most of its peers.

AAL vs. CAT: A comparison of their Net Profit Margin (TTM) against their respective Passenger Airlines and Machinery industry benchmarks.

Operating Profit Margin (TTM)

AAL

3.93%

Passenger Airlines Industry

Max: 22.11%
Q3: 12.67%
Median: 8.27%
Q1: 4.07%
Min: -2.77%

AAL’s Operating Profit Margin of 3.93% is in the lower quartile for the Passenger Airlines industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

CAT

17.65%

Machinery Industry

Max: 27.20%
Q3: 15.91%
Median: 11.33%
Q1: 7.73%
Min: 0.23%

An Operating Profit Margin of 17.65% places CAT in the upper quartile for the Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AAL vs. CAT: A comparison of their Operating Profit Margin (TTM) against their respective Passenger Airlines and Machinery industry benchmarks.

Profitability at a Glance

Symbol	AAL	CAT
Return on Equity (TTM)	265.62%	48.25%
Return on Assets (TTM)	0.96%	10.40%
Net Profit Margin (TTM)	1.11%	14.34%
Operating Profit Margin (TTM)	3.93%	17.65%
Gross Profit Margin (TTM)	65.01%	35.53%

Financial Strength

Current Ratio (MRQ)

AAL

0.54

Passenger Airlines Industry

Max: 1.46
Q3: 0.91
Median: 0.68
Q1: 0.51
Min: 0.19

AAL’s Current Ratio of 0.54 aligns with the median group of the Passenger Airlines industry, indicating that its short-term liquidity is in line with its sector peers.

CAT

1.38

Machinery Industry

Max: 3.27
Q3: 2.16
Median: 1.75
Q1: 1.32
Min: 0.70

CAT’s Current Ratio of 1.38 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.

AAL vs. CAT: A comparison of their Current Ratio (MRQ) against their respective Passenger Airlines and Machinery industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AAL

157.71

Passenger Airlines Industry

Max: 10.23
Q3: 4.67
Median: 1.26
Q1: 0.81
Min: 0.00

With a Debt-to-Equity Ratio of 157.71, AAL operates with exceptionally high leverage compared to the Passenger Airlines industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

CAT

2.01

Machinery Industry

Max: 1.49
Q3: 0.75
Median: 0.45
Q1: 0.23
Min: 0.00

With a Debt-to-Equity Ratio of 2.01, CAT operates with exceptionally high leverage compared to the Machinery industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

AAL vs. CAT: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Passenger Airlines and Machinery industry benchmarks.

Interest Coverage Ratio (TTM)

AAL

1.75

Passenger Airlines Industry

Max: 22.60
Q3: 17.27
Median: 6.75
Q1: 1.94
Min: -8.55

In the lower quartile for the Passenger Airlines industry, AAL’s Interest Coverage Ratio of 1.75 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

CAT

12.53

Machinery Industry

Max: 67.55
Q3: 36.46
Median: 13.55
Q1: 7.73
Min: -1.43

CAT’s Interest Coverage Ratio of 12.53 is positioned comfortably within the norm for the Machinery industry, indicating a standard and healthy capacity to cover its interest payments.

AAL vs. CAT: A comparison of their Interest Coverage Ratio (TTM) against their respective Passenger Airlines and Machinery industry benchmarks.

Financial Strength at a Glance

Symbol	AAL	CAT
Current Ratio (MRQ)	0.54	1.38
Quick Ratio (MRQ)	0.39	0.78
Debt-to-Equity Ratio (MRQ)	157.71	2.01
Interest Coverage Ratio (TTM)	1.75	12.53

Growth

Revenue Growth

AAL vs. CAT: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AAL vs. CAT: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AAL

0.00%

Passenger Airlines Industry

Max: 7.00%
Q3: 3.61%
Median: 1.57%
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.

CAT

1.04%

Machinery Industry

Max: 4.98%
Q3: 2.83%
Median: 1.89%
Q1: 1.17%
Min: 0.00%

CAT’s Dividend Yield of 1.04% is in the lower quartile for the Machinery industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

AAL vs. CAT: A comparison of their Dividend Yield (TTM) against their respective Passenger Airlines and Machinery industry benchmarks.

Dividend Payout Ratio (TTM)

AAL

0.00%

Passenger Airlines Industry

Max: 93.13%
Q3: 51.43%
Median: 14.52%
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.

CAT

29.36%

Machinery Industry

Max: 209.29%
Q3: 102.41%
Median: 62.34%
Q1: 29.36%
Min: 0.00%

CAT’s Dividend Payout Ratio of 29.36% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AAL vs. CAT: A comparison of their Dividend Payout Ratio (TTM) against their respective Passenger Airlines and Machinery industry benchmarks.

Dividend at a Glance

Symbol	AAL	CAT
Dividend Yield (TTM)	0.00%	1.04%
Dividend Payout Ratio (TTM)	0.00%	29.36%

Valuation

Price-to-Earnings Ratio (TTM)

AAL

13.99

Passenger Airlines Industry

Max: 13.99
Q3: 10.90
Median: 8.70
Q1: 6.40
Min: 2.58

A P/E Ratio of 13.99 places AAL in the upper quartile for the Passenger Airlines industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

CAT

28.18

Machinery Industry

Max: 46.28
Q3: 29.52
Median: 24.18
Q1: 16.92
Min: 7.99

CAT’s P/E Ratio of 28.18 is within the middle range for the Machinery industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AAL vs. CAT: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Passenger Airlines and Machinery industry benchmarks.

Price-to-Sales Ratio (TTM)

AAL

0.16

Passenger Airlines Industry

Max: 1.48
Q3: 0.83
Median: 0.61
Q1: 0.37
Min: 0.08

In the lower quartile for the Passenger Airlines industry, AAL’s P/S Ratio of 0.16 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.

CAT

4.04

Machinery Industry

Max: 5.25
Q3: 2.82
Median: 1.74
Q1: 0.99
Min: 0.27

CAT’s P/S Ratio of 4.04 is in the upper echelon for the Machinery industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

AAL vs. CAT: A comparison of their Price-to-Sales Ratio (TTM) against their respective Passenger Airlines and Machinery industry benchmarks.

Price-to-Book Ratio (MRQ)

AAL

75.06

Passenger Airlines Industry

Max: 3.44
Q3: 3.03
Median: 2.07
Q1: 1.28
Min: 0.49

At 75.06, AAL’s P/B Ratio is at an extreme premium to the Passenger Airlines industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

CAT

10.82

Machinery Industry

Max: 7.18
Q3: 4.18
Median: 2.71
Q1: 1.54
Min: 0.52

At 10.82, CAT’s P/B Ratio is at an extreme premium to the Machinery industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

AAL vs. CAT: A comparison of their Price-to-Book Ratio (MRQ) against their respective Passenger Airlines and Machinery industry benchmarks.

Valuation at a Glance

Symbol	AAL	CAT
Price-to-Earnings Ratio (TTM)	13.99	28.18
Price-to-Sales Ratio (TTM)	0.16	4.04
Price-to-Book Ratio (MRQ)	75.06	10.82
Price-to-Free Cash Flow Ratio (TTM)	4.02	27.29