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

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

Company Profile

SymbolAALETN
Company NameAmerican Airlines Group Inc.Eaton Corporation plc
CountryUnited StatesIreland
GICS SectorIndustrialsIndustrials
GICS IndustryPassenger AirlinesElectrical Equipment
Market Capitalization8.58 billion USD134.60 billion USD
ExchangeNasdaqGSNYSE
Listing DateSeptember 27, 2005June 1, 1972
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of AAL and ETN 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. ETN: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAALETN
5-Day Price Return-1.66%-0.93%
13-Week Price Return14.04%7.69%
26-Week Price Return-18.75%11.74%
52-Week Price Return28.21%16.15%
Month-to-Date Return13.14%-10.13%
Year-to-Date Return-25.42%4.19%
10-Day Avg. Volume66.73M1.92M
3-Month Avg. Volume62.41M2.37M
3-Month Volatility55.41%26.37%
Beta1.411.19

Profitability

Return on Equity (TTM)

AAL

265.62%

Passenger Airlines Industry

Max
49.96%
Q3
28.15%
Median
15.41%
Q1
8.29%
Min
-11.01%

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.

ETN

21.03%

Electrical Equipment Industry

Max
37.56%
Q3
20.60%
Median
14.38%
Q1
4.35%
Min
0.90%

In the upper quartile for the Electrical Equipment industry, ETN’s Return on Equity of 21.03% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

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

Net Profit Margin (TTM)

AAL

1.05%

Passenger Airlines Industry

Max
17.65%
Q3
8.90%
Median
5.80%
Q1
2.02%
Min
-3.12%

Falling into the lower quartile for the Passenger Airlines industry, AAL’s Net Profit Margin of 1.05% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

ETN

15.56%

Electrical Equipment Industry

Max
20.43%
Q3
10.97%
Median
6.07%
Q1
3.16%
Min
0.29%

A Net Profit Margin of 15.56% places ETN in the upper quartile for the Electrical Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

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

Operating Profit Margin (TTM)

AAL

3.82%

Passenger Airlines Industry

Max
22.47%
Q3
12.33%
Median
8.62%
Q1
4.43%
Min
-2.88%

AAL’s Operating Profit Margin of 3.82% 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.

ETN

19.27%

Electrical Equipment Industry

Max
26.20%
Q3
14.31%
Median
7.54%
Q1
3.77%
Min
-5.64%

An Operating Profit Margin of 19.27% places ETN in the upper quartile for the Electrical Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

SymbolAALETN
Return on Equity (TTM)265.62%21.03%
Return on Assets (TTM)0.90%9.99%
Net Profit Margin (TTM)1.05%15.56%
Operating Profit Margin (TTM)3.82%19.27%
Gross Profit Margin (TTM)64.95%38.45%

Financial Strength

Current Ratio (MRQ)

AAL

0.58

Passenger Airlines Industry

Max
1.46
Q3
0.94
Median
0.76
Q1
0.54
Min
0.17

AAL’s Current Ratio of 0.58 aligns with the median group of the Passenger Airlines industry, indicating that its short-term liquidity is in line with its sector peers.

ETN

1.24

Electrical Equipment Industry

Max
3.02
Q3
1.99
Median
1.41
Q1
1.07
Min
0.80

ETN’s Current Ratio of 1.24 aligns with the median group of the Electrical Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

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

Debt-to-Equity Ratio (MRQ)

AAL

157.71

Passenger Airlines Industry

Max
9.80
Q3
4.82
Median
1.30
Q1
0.89
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.

ETN

0.59

Electrical Equipment Industry

Max
1.44
Q3
0.99
Median
0.56
Q1
0.24
Min
0.00

ETN’s Debt-to-Equity Ratio of 0.59 is typical for the Electrical Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

Interest Coverage Ratio (TTM)

AAL

1.75

Passenger Airlines Industry

Max
22.60
Q3
16.29
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.

ETN

36.12

Electrical Equipment Industry

Max
36.12
Q3
19.29
Median
9.38
Q1
1.16
Min
-10.92

ETN’s Interest Coverage Ratio of 36.12 is in the upper quartile for the Electrical Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

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

Financial Strength at a Glance

SymbolAALETN
Current Ratio (MRQ)0.581.24
Quick Ratio (MRQ)0.440.63
Debt-to-Equity Ratio (MRQ)157.710.59
Interest Coverage Ratio (TTM)1.7536.12

Growth

Revenue Growth

AAL vs. ETN: 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. ETN: 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
6.71%
Q3
3.95%
Median
1.10%
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.

ETN

1.16%

Electrical Equipment Industry

Max
2.20%
Q3
1.53%
Median
1.01%
Q1
0.00%
Min
0.00%

ETN’s Dividend Yield of 1.16% is consistent with its peers in the Electrical Equipment industry, providing a dividend return that is standard for its sector.

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

Dividend Payout Ratio (TTM)

AAL

0.00%

Passenger Airlines Industry

Max
71.59%
Q3
38.54%
Median
8.16%
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.

ETN

39.77%

Electrical Equipment Industry

Max
119.44%
Q3
51.87%
Median
27.71%
Q1
0.00%
Min
0.00%

ETN’s Dividend Payout Ratio of 39.77% is within the typical range for the Electrical Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolAALETN
Dividend Yield (TTM)0.00%1.16%
Dividend Payout Ratio (TTM)0.00%39.77%

Valuation

Price-to-Earnings Ratio (TTM)

AAL

15.38

Passenger Airlines Industry

Max
13.29
Q3
11.94
Median
8.78
Q1
7.42
Min
3.07

At 15.38, AAL’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Passenger Airlines industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ETN

34.15

Electrical Equipment Industry

Max
81.85
Q3
44.17
Median
27.61
Q1
18.62
Min
7.73

ETN’s P/E Ratio of 34.15 is within the middle range for the Electrical Equipment 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. ETN: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Passenger Airlines and Electrical Equipment industry benchmarks.

Price-to-Sales Ratio (TTM)

AAL

0.16

Passenger Airlines Industry

Max
1.09
Q3
0.74
Median
0.61
Q1
0.44
Min
0.09

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.

ETN

5.30

Electrical Equipment Industry

Max
8.18
Q3
4.02
Median
1.84
Q1
0.97
Min
0.44

ETN’s P/S Ratio of 5.30 is in the upper echelon for the Electrical Equipment 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. ETN: A comparison of their Price-to-Sales Ratio (TTM) against their respective Passenger Airlines and Electrical Equipment industry benchmarks.

Price-to-Book Ratio (MRQ)

AAL

75.06

Passenger Airlines Industry

Max
3.44
Q3
2.89
Median
1.84
Q1
1.22
Min
0.56

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.

ETN

7.51

Electrical Equipment Industry

Max
8.50
Q3
4.53
Median
3.39
Q1
1.70
Min
0.51

ETN’s P/B Ratio of 7.51 is in the upper tier for the Electrical Equipment industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

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

Valuation at a Glance

SymbolAALETN
Price-to-Earnings Ratio (TTM)15.3834.15
Price-to-Sales Ratio (TTM)0.165.30
Price-to-Book Ratio (MRQ)75.067.51
Price-to-Free Cash Flow Ratio (TTM)4.1640.98