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

Updated

Here’s a clear look at AAL and GWW, 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

GWW stands out with 51.95 billion USD in market value—about 7.01× AAL’s market cap of 7.41 billion USD.

With betas of 1.32 for AAL and 1.24 for GWW, both show similar volatility profiles relative to the overall market.

SymbolAALGWW
Company NameAmerican Airlines Group Inc.W.W. Grainger, Inc.
CountryUSUS
SectorIndustrialsIndustrials
IndustryAirlines, Airports & Air ServicesIndustrial - Distribution
CEOMr. Robert D. Isom Jr.Mr. Donald G. Macpherson
Price11.24 USD1,081.38 USD
Market Cap7.41 billion USD51.95 billion USD
Beta1.321.24
ExchangeNASDAQNYSE
IPO DateSeptember 27, 2005February 21, 1973
ADRNoNo

Performance Comparison

This chart compares the performance of AAL and GWW 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 GWW 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). GWW, with a P/B of 14.98, maintains positive shareholder equity.
SymbolAALGWW
Price-to-Earnings Ratio (P/E, TTM)10.8127.29
Forward PEG Ratio (TTM)0.202.99
Price-to-Sales Ratio (P/S, TTM)0.143.01
Price-to-Book Ratio (P/B, TTM)-1.6414.98
Price-to-Free Cash Flow Ratio (P/FCF, TTM)2.1133.54
EV-to-EBITDA (TTM)10.2719.01
EV-to-Sales (TTM)0.803.13
EV-to-Free Cash Flow (TTM)12.2734.84

Dividend Comparison

AAL offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while GWW provides a 0.78% dividend yield, giving investors a steady income stream.

SymbolAALGWW
Dividend Yield (TTM)0.00%0.78%

Financial Strength Metrics Comparison

This section dives into the financial resilience of AAL and GWW, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • AAL’s current ratio of 0.52 signals a possible liquidity squeeze, while GWW at 2.74 comfortably covers its short-term obligations.
  • AAL’s quick ratio of 0.42 suggests it may struggle to cover immediate liabilities without selling inventory or raising cash, whereas GWW at 1.60 maintains a comfortable buffer of liquid assets.
  • AAL has negative equity (debt-to-equity ratio -8.12), an unusual warning sign, while GWW at 0.77 maintains a conventional debt-to-equity balance.
SymbolAALGWW
Current Ratio (TTM)0.522.74
Quick Ratio (TTM)0.421.60
Debt-to-Equity Ratio (TTM)-8.120.77
Debt-to-Assets Ratio (TTM)0.580.31
Interest Coverage Ratio (TTM)1.2534.29