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

Company Overview

DAL’s market capitalization of 33.47 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 1.51 for DAL, both stocks show similar sensitivity to overall market movements.

Performance Comparison

This chart compares the performance of AAL and DAL 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.

Valuation Metrics Comparison

This section compares the market valuation of AAL and DAL. 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.

Dividend Comparison

AAL currently offers no dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while DAL provides a 1.17% dividend yield, offering investors a component of income return.

Financial Strength Metrics Comparison

This section evaluates the financial strength of AAL and DAL. 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 and DAL’s current ratio of 0.38 are both considered low. For AAL, this level suggests it might encounter challenges in using its current assets to satisfy its immediate financial obligations. DAL’s low current ratio also points to potential constraints on its liquidity, meaning it could find it difficult to cover short-term liabilities with its available assets.
• AAL’s quick ratio of 0.42 and DAL’s quick ratio of 0.33 are both considered low. For AAL, this low ratio indicates that its most liquid assets (excluding inventory) may not be sufficient to cover its immediate liabilities, suggesting potential pressure on its short-term solvency. DAL’s low quick ratio also points to constrained immediate liquidity, potentially highlighting a heavy reliance on converting inventory to meet its short-term financial obligations.
• 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.