AAL vs. CSX: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AAL and CSX, comparing key factors like performance, valuation metrics, dividends, and financial strength.
Company Overview
CSX’s market capitalization of 60.08 billion USD is significantly greater than AAL’s 7.76 billion USD, highlighting its more substantial market valuation.
With betas of 1.38 for AAL and 1.24 for CSX, both stocks show similar sensitivity to overall market movements.
| Symbol | AAL | CSX |
|---|---|---|
| Company Name | American Airlines Group Inc. | CSX Corporation |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Airlines, Airports & Air Services | Railroads |
| CEO | Mr. Robert D. Isom Jr. | Mr. Joseph R. Hinrichs |
| Price | 11.76 USD | 31.98 USD |
| Market Cap | 7.76 billion USD | 60.08 billion USD |
| Beta | 1.38 | 1.24 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | September 27, 2005 | November 3, 1980 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AAL and CSX over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
- AAL: $10425.53 (4.26%)
- CSX: $9937.85 (-0.62%)
Valuation Metrics Comparison
This section compares the market valuation of AAL and CSX. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.
- AAL’s Price-to-Book (P/B) ratio of -1.72 reflects a negative book value (meaning negative shareholder equity). This is a significant indicator of financial distress and raises substantial concerns about its solvency.
| Symbol | AAL | CSX |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 11.31 | 18.68 |
| Forward PEG Ratio (TTM) | 0.21 | 1.49 |
| Price-to-Sales Ratio (P/S, TTM) | 0.14 | 4.21 |
| Price-to-Book Ratio (P/B, TTM) | -1.72 | 4.97 |
| EV-to-EBITDA (TTM) | 10.35 | 11.68 |
| EV-to-Sales (TTM) | 0.80 | 5.50 |
Dividend Comparison
AAL currently offers no dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while CSX provides a 1.56% dividend yield, offering investors a component of income return.
| Symbol | AAL | CSX |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.56% |
Financial Strength Metrics Comparison
This section evaluates the financial strength of AAL and CSX. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.
- AAL’s current ratio of 0.52 is considered low. This may signal potential challenges with its short-term liquidity, implying that its current assets might offer a limited buffer for meeting its immediate debts and could affect its capacity to smoothly manage upcoming financial duties.
- AAL’s quick ratio of 0.42 is low. This suggests potential difficulty in meeting its immediate financial responsibilities with its most liquid assets (excluding inventory), possibly indicating a greater dependence on inventory turnover to service short-term debts.
- AAL’s Debt-to-Equity (D/E) ratio of -8.12 indicates negative shareholder equity. This is a significant red flag, suggesting its liabilities exceed its assets and posing a considerable threat to its long-term financial health.
| Symbol | AAL | CSX |
|---|---|---|
| Current Ratio (TTM) | 0.52 | 0.88 |
| Quick Ratio (TTM) | 0.42 | 0.75 |
| Debt-to-Equity Ratio (TTM) | -8.12 | 1.61 |
| Debt-to-Asset Ratio (TTM) | 0.58 | 0.45 |
| Net Debt-to-EBITDA Ratio (TTM) | 8.51 | 2.75 |
| Interest Coverage Ratio (TTM) | 1.25 | 5.94 |