AAL vs. EMR: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AAL and EMR, 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
EMR stands out with 65.33 billion USD in market value—about 8.81× AAL’s market cap of 7.41 billion USD.
With betas of 1.32 for AAL and 1.25 for EMR, both show similar volatility profiles relative to the overall market.
| Symbol | AAL | EMR |
|---|---|---|
| Company Name | American Airlines Group Inc. | Emerson Electric Co. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Airlines, Airports & Air Services | Industrial - Machinery |
| CEO | Mr. Robert D. Isom Jr. | Mr. Surendralal Lanca Karsanbhai |
| Price | 11.24 USD | 116.15 USD |
| Market Cap | 7.41 billion USD | 65.33 billion USD |
| Beta | 1.32 | 1.25 |
| Exchange | NASDAQ | NYSE |
| IPO Date | September 27, 2005 | June 1, 1972 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AAL and EMR 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 EMR 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). EMR, with a P/B of 3.40, maintains positive shareholder equity.
| Symbol | AAL | EMR |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 10.81 | 27.30 |
| Forward PEG Ratio (TTM) | 0.20 | 3.38 |
| Price-to-Sales Ratio (P/S, TTM) | 0.14 | 3.71 |
| Price-to-Book Ratio (P/B, TTM) | -1.64 | 3.40 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 2.11 | 23.65 |
| EV-to-EBITDA (TTM) | 10.27 | 17.25 |
| EV-to-Sales (TTM) | 0.80 | 4.45 |
| EV-to-Free Cash Flow (TTM) | 12.27 | 28.35 |
Dividend Comparison
AAL offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while EMR provides a 1.81% dividend yield, giving investors a steady income stream.
| Symbol | AAL | EMR |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.81% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AAL and EMR, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- With current ratios of 0.52 and 0.80, both AAL and EMR have less current assets than short-term liabilities, which could strain their working capital and force reliance on additional financing.
- Both AAL (quick ratio 0.42) and EMR (quick ratio 0.59) 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 EMR at 0.77 maintains a conventional debt-to-equity balance.
| Symbol | AAL | EMR |
|---|---|---|
| Current Ratio (TTM) | 0.52 | 0.80 |
| Quick Ratio (TTM) | 0.42 | 0.59 |
| Debt-to-Equity Ratio (TTM) | -8.12 | 0.77 |
| Debt-to-Assets Ratio (TTM) | 0.58 | 0.35 |
| Interest Coverage Ratio (TTM) | 1.25 | 15.21 |