AAL vs. CNH: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AAL and CNH, 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
CNH towers over AAL with a market cap of 16.06 billion USD, roughly 2.17 times the 7.41 billion USD of its peer.
AAL at 1.32 and CNH at 1.57 move in sync when it comes to market volatility.
| Symbol | AAL | CNH |
|---|---|---|
| Company Name | American Airlines Group Inc. | CNH Industrial N.V. |
| Country | US | GB |
| Sector | Industrials | Industrials |
| Industry | Airlines, Airports & Air Services | Agricultural - Machinery |
| CEO | Mr. Robert D. Isom Jr. | Mr. Gerrit Andreas Marx Ph.D. |
| Price | 11.24 USD | 12.85 USD |
| Market Cap | 7.41 billion USD | 16.06 billion USD |
| Beta | 1.317 | 1.572 |
| Exchange | NASDAQ | NYSE |
| IPO Date | September 27, 2005 | November 1, 1996 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AAL and CNH 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 CNH based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- AAL shows a negative Price-to-Book of -1.64, revealing that its liabilities surpass its assets. This precarious position suggests a fragile balance sheet, where the company’s market value hinges on factors beyond its tangible worth. On the other hand, CNH at 2.05 maintains a positive net worth, free of this troubling indicator.
| Symbol | AAL | CNH |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 10.81 | 15.38 |
| Forward PEG Ratio (TTM) | 0.20 | 1.69 |
| Price-to-Sales Ratio (P/S, TTM) | 0.14 | 0.85 |
| Price-to-Book Ratio (P/B, TTM) | -1.64 | 2.05 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 2.11 | 9.04 |
| EV-to-EBITDA (TTM) | 10.27 | 11.94 |
| EV-to-Sales (TTM) | 0.80 | 2.16 |
| EV-to-Free Cash Flow (TTM) | 12.27 | 22.89 |
Dividend Comparison
AAL pays no dividends, focusing all profits on growth, appealing to capital-gains investors. Meanwhile, CNH’s 1.95% yield rewards shareholders, showing financial confidence while supporting objectives—a contrast to AAL’s growth-only approach.
| Symbol | AAL | CNH |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.95% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AAL and CNH, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- AAL posts a current ratio of 0.52 under 1, where current assets fall short of covering short-term debts—manageable perhaps with solid cash inflows. Compare that to CNH, sitting at 7.96, where liabilities are comfortably met.
- AAL’s quick ratio sits at 0.42 below 0.8, leaving its cash and near-cash assets shy of short-term obligations—potentially a stretch without extra funds. Meanwhile, CNH lands at 6.64, with enough liquidity to spare.
- AAL logs a D/E of -8.12 in the red, hinting at negative equity—think losses or buybacks pushing it there. Flip to CNH, where 3.35 sails past 3.0, piling on debt that could magnify risks.
- AAL clocks in at 1.25 below 1.5, earnings just keeping ahead of interest—dicey if profits stumble. By contrast, CNH’s 2.26 sails through with plenty of cushion.
| Symbol | AAL | CNH |
|---|---|---|
| Current Ratio (TTM) | 0.52 | 7.96 |
| Quick Ratio (TTM) | 0.42 | 6.64 |
| Debt-to-Equity Ratio (TTM) | -8.12 | 3.35 |
| Debt-to-Assets Ratio (TTM) | 0.58 | 0.63 |
| Interest Coverage Ratio (TTM) | 1.25 | 2.26 |