Seek Returns logo

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

Updated on

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

Company Overview

HUBB’s market capitalization of 22.14 billion USD is significantly greater than AAL’s 7.71 billion USD, highlighting its more substantial market valuation.

With betas of 1.38 for AAL and 0.98 for HUBB, both stocks show similar sensitivity to overall market movements.

SymbolAALHUBB
Company NameAmerican Airlines Group Inc.Hubbell Incorporated
CountryUSUS
SectorIndustrialsIndustrials
IndustryAirlines, Airports & Air ServicesElectrical Equipment & Parts
CEORobert D. Isom Jr.Gerben W. Bakker
Price11.69 USD414.84 USD
Market Cap7.71 billion USD22.14 billion USD
Beta1.380.98
ExchangeNASDAQNYSE
IPO DateSeptember 27, 2005June 5, 1972
ADRNoNo

Historical Performance

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

Profitability

Return on Equity

AAL

-15.15%

Airlines, Airports & Air Services Industry

Max
42.21%
Q3
26.98%
Median
13.01%
Q1
0.37%
Min
-17.14%

AAL has a negative Return on Equity of -15.15%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

HUBB

24.97%

Electrical Equipment & Parts Industry

Max
40.77%
Q3
24.97%
Median
9.16%
Q1
-21.24%
Min
-83.49%

HUBB’s Return on Equity of 24.97% is on par with the norm for the Electrical Equipment & Parts industry, indicating its profitability relative to shareholder equity is typical for the sector.

AAL vs. HUBB: A comparison of their ROE against their respective Airlines, Airports & Air Services and Electrical Equipment & Parts industry benchmarks.

Return on Invested Capital

AAL

4.12%

Airlines, Airports & Air Services Industry

Max
17.34%
Q3
13.78%
Median
4.53%
Q1
1.05%
Min
-13.54%

AAL’s Return on Invested Capital of 4.12% is in line with the norm for the Airlines, Airports & Air Services industry, reflecting a standard level of efficiency in generating profits from its capital base.

HUBB

15.01%

Electrical Equipment & Parts Industry

Max
28.65%
Q3
9.59%
Median
4.18%
Q1
-26.21%
Min
-64.66%

In the upper quartile for the Electrical Equipment & Parts industry, HUBB’s Return on Invested Capital of 15.01% signifies a highly effective use of its capital to generate profits when compared to its peers.

AAL vs. HUBB: A comparison of their ROIC against their respective Airlines, Airports & Air Services and Electrical Equipment & Parts industry benchmarks.

Net Profit Margin

AAL

1.26%

Airlines, Airports & Air Services Industry

Max
24.88%
Q3
9.50%
Median
3.91%
Q1
-1.02%
Min
-10.56%

AAL’s Net Profit Margin of 1.26% is aligned with the median group of its peers in the Airlines, Airports & Air Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

HUBB

14.29%

Electrical Equipment & Parts Industry

Max
18.22%
Q3
10.17%
Median
3.30%
Q1
-100.73%
Min
-135.80%

A Net Profit Margin of 14.29% places HUBB in the upper quartile for the Electrical Equipment & Parts industry, signifying strong profitability and more effective cost management than most of its peers.

AAL vs. HUBB: A comparison of their Net Profit Margin against their respective Airlines, Airports & Air Services and Electrical Equipment & Parts industry benchmarks.

Operating Profit Margin

AAL

4.31%

Airlines, Airports & Air Services Industry

Max
22.38%
Q3
14.22%
Median
9.66%
Q1
-0.09%
Min
-12.58%

AAL’s Operating Profit Margin of 4.31% is around the midpoint for the Airlines, Airports & Air Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

HUBB

19.78%

Electrical Equipment & Parts Industry

Max
19.88%
Q3
14.79%
Median
7.23%
Q1
-48.45%
Min
-140.29%

An Operating Profit Margin of 19.78% places HUBB in the upper quartile for the Electrical Equipment & Parts industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AAL vs. HUBB: A comparison of their Operating Margin against their respective Airlines, Airports & Air Services and Electrical Equipment & Parts industry benchmarks.

Profitability at a Glance

SymbolAALHUBB
Return on Equity (TTM)-15.15%24.97%
Return on Assets (TTM)1.09%11.55%
Return on Invested Capital (TTM)4.12%15.01%
Net Profit Margin (TTM)1.26%14.29%
Operating Profit Margin (TTM)4.31%19.78%
Gross Profit Margin (TTM)23.28%34.13%

Financial Strength

Current Ratio

AAL

0.52

Airlines, Airports & Air Services Industry

Max
1.77
Q3
1.68
Median
0.77
Q1
0.62
Min
0.32

AAL’s Current Ratio of 0.52 falls into the lower quartile for the Airlines, Airports & Air Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

HUBB

1.17

Electrical Equipment & Parts Industry

Max
4.74
Q3
3.44
Median
2.63
Q1
1.95
Min
1.17

HUBB’s Current Ratio of 1.17 falls into the lower quartile for the Electrical Equipment & Parts industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AAL vs. HUBB: A comparison of their Current Ratio against their respective Airlines, Airports & Air Services and Electrical Equipment & Parts industry benchmarks.

Debt-to-Equity Ratio

AAL

-8.12

Airlines, Airports & Air Services Industry

Max
3.85
Q3
2.92
Median
1.02
Q1
0.43
Min
0.04

AAL has a Debt-to-Equity Ratio of -8.12, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.

HUBB

0.61

Electrical Equipment & Parts Industry

Max
0.82
Q3
0.68
Median
0.61
Q1
0.47
Min
0.33

HUBB’s Debt-to-Equity Ratio of 0.61 is typical for the Electrical Equipment & Parts industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AAL vs. HUBB: A comparison of their D/E Ratio against their respective Airlines, Airports & Air Services and Electrical Equipment & Parts industry benchmarks.

Interest Coverage Ratio

AAL

1.25

Airlines, Airports & Air Services Industry

Max
8.60
Q3
6.00
Median
4.19
Q1
1.03
Min
-1.40

AAL’s Interest Coverage Ratio of 1.25 is positioned comfortably within the norm for the Airlines, Airports & Air Services industry, indicating a standard and healthy capacity to cover its interest payments.

HUBB

21.00

Electrical Equipment & Parts Industry

Max
21.00
Q3
9.09
Median
3.12
Q1
-7.14
Min
-31.43

HUBB’s Interest Coverage Ratio of 21.00 is in the upper quartile for the Electrical Equipment & Parts industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

AAL vs. HUBB: A comparison of their Interest Coverage against their respective Airlines, Airports & Air Services and Electrical Equipment & Parts industry benchmarks.

Financial Strength at a Glance

SymbolAALHUBB
Current Ratio (TTM)0.521.17
Quick Ratio (TTM)0.420.73
Debt-to-Equity Ratio (TTM)-8.120.61
Debt-to-Asset Ratio (TTM)0.580.29
Net Debt-to-EBITDA Ratio (TTM)8.511.28
Interest Coverage Ratio (TTM)1.2521.00

Growth

The following charts compare key year-over-year (YoY) growth metrics for AAL and HUBB. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AAL vs. HUBB: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AAL vs. HUBB: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AAL vs. HUBB: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AAL

0.00%

Airlines, Airports & Air Services Industry

Max
162.17%
Q3
2.10%
Median
0.00%
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.

HUBB

1.25%

Electrical Equipment & Parts Industry

Max
1.81%
Q3
0.50%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.25%, HUBB offers a more attractive income stream than most of its peers in the Electrical Equipment & Parts industry, signaling a strong commitment to shareholder returns.

AAL vs. HUBB: A comparison of their Dividend Yield against their respective Airlines, Airports & Air Services and Electrical Equipment & Parts industry benchmarks.

Dividend Payout Ratio

AAL

0.00%

Airlines, Airports & Air Services Industry

Max
106.87%
Q3
15.62%
Median
0.00%
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.

HUBB

34.08%

Electrical Equipment & Parts Industry

Max
162.68%
Q3
20.84%
Median
4.65%
Q1
0.00%
Min
0.00%

HUBB’s Dividend Payout Ratio of 34.08% is in the upper quartile for the Electrical Equipment & Parts industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

AAL vs. HUBB: A comparison of their Payout Ratio against their respective Airlines, Airports & Air Services and Electrical Equipment & Parts industry benchmarks.

Dividend at a Glance

SymbolAALHUBB
Dividend Yield (TTM)0.00%1.25%
Dividend Payout Ratio (TTM)0.00%34.08%

Valuation

Price-to-Earnings Ratio

AAL

11.24

Airlines, Airports & Air Services Industry

Max
24.07
Q3
18.40
Median
12.44
Q1
11.24
Min
7.21

AAL’s P/E Ratio of 11.24 is within the middle range for the Airlines, Airports & Air Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

HUBB

28.07

Electrical Equipment & Parts Industry

Max
27.52
Q3
27.52
Median
24.22
Q1
20.08
Min
9.48

At 28.07, HUBB’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Electrical Equipment & Parts industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

AAL vs. HUBB: A comparison of their P/E Ratio against their respective Airlines, Airports & Air Services and Electrical Equipment & Parts industry benchmarks.

Forward P/E to Growth Ratio

AAL

0.21

Airlines, Airports & Air Services Industry

Max
1.38
Q3
1.07
Median
0.61
Q1
0.32
Min
0.03

The Forward PEG Ratio is often not a primary valuation metric in the Airlines, Airports & Air Services industry.

HUBB

2.09

Electrical Equipment & Parts Industry

Max
5.30
Q3
4.04
Median
2.62
Q1
2.03
Min
0.01

The Forward PEG Ratio is often not a primary valuation metric in the Electrical Equipment & Parts industry.

AAL vs. HUBB: A comparison of their Forward PEG Ratio against their respective Airlines, Airports & Air Services and Electrical Equipment & Parts industry benchmarks.

Price-to-Sales Ratio

AAL

0.14

Airlines, Airports & Air Services Industry

Max
1.84
Q3
1.69
Median
0.98
Q1
0.45
Min
0.14

In the lower quartile for the Airlines, Airports & Air Services industry, AAL’s P/S Ratio of 0.14 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.

HUBB

3.96

Electrical Equipment & Parts Industry

Max
5.76
Q3
5.66
Median
3.18
Q1
1.88
Min
0.31

HUBB’s P/S Ratio of 3.96 aligns with the market consensus for the Electrical Equipment & Parts industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AAL vs. HUBB: A comparison of their P/S Ratio against their respective Airlines, Airports & Air Services and Electrical Equipment & Parts industry benchmarks.

Price-to-Book Ratio

AAL

-1.71

Airlines, Airports & Air Services Industry

Max
12.86
Q3
8.15
Median
2.07
Q1
1.50
Min
0.62

AAL has a negative P/B Ratio of -1.71, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.

HUBB

6.86

Electrical Equipment & Parts Industry

Max
10.91
Q3
6.77
Median
3.73
Q1
1.80
Min
0.59

HUBB’s P/B Ratio of 6.86 is in the upper tier for the Electrical Equipment & Parts 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. HUBB: A comparison of their P/B Ratio against their respective Airlines, Airports & Air Services and Electrical Equipment & Parts industry benchmarks.

Valuation at a Glance

SymbolAALHUBB
Price-to-Earnings Ratio (P/E, TTM)11.2428.07
Forward PEG Ratio (TTM)0.212.09
Price-to-Sales Ratio (P/S, TTM)0.143.96
Price-to-Book Ratio (P/B, TTM)-1.716.86
Price-to-Free Cash Flow Ratio (P/FCF, TTM)2.1928.74
EV-to-EBITDA (TTM)10.3418.38
EV-to-Sales (TTM)0.804.25