AAL vs. IR: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AAL and IR, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | AAL | IR |
|---|---|---|
| Company Name | American Airlines Group Inc. | Ingersoll Rand Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Passenger Airlines | Machinery |
| Market Capitalization | 8.31 billion USD | 29.48 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | September 27, 2005 | May 12, 2017 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of AAL and IR 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.
Historical Performance at a Glance
| Symbol | AAL | IR |
|---|---|---|
| 5-Day Price Return | -4.13% | -2.30% |
| 13-Week Price Return | -3.11% | -3.64% |
| 26-Week Price Return | 3.74% | -10.69% |
| 52-Week Price Return | -8.92% | -27.68% |
| Month-to-Date Return | -2.82% | -1.13% |
| Year-to-Date Return | -26.79% | -16.57% |
| 10-Day Avg. Volume | 52.31M | 3.19M |
| 3-Month Avg. Volume | 70.06M | 3.32M |
| 3-Month Volatility | 44.95% | 25.09% |
| Beta | 1.27 | 1.34 |
Profitability
Return on Equity (TTM)
AAL
265.62%
Passenger Airlines Industry
- Max
- 51.60%
- Q3
- 26.80%
- Median
- 15.05%
- Q1
- 3.96%
- Min
- -19.21%
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.
IR
5.29%
Machinery Industry
- Max
- 30.85%
- Q3
- 19.99%
- Median
- 12.37%
- Q1
- 8.44%
- Min
- -7.69%
IR’s Return on Equity of 5.29% is in the lower quartile for the Machinery industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
Net Profit Margin (TTM)
AAL
1.11%
Passenger Airlines Industry
- Max
- 18.35%
- Q3
- 8.99%
- Median
- 6.30%
- Q1
- 2.19%
- Min
- -5.16%
Falling into the lower quartile for the Passenger Airlines industry, AAL’s Net Profit Margin of 1.11% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
IR
7.25%
Machinery Industry
- Max
- 19.28%
- Q3
- 10.99%
- Median
- 7.89%
- Q1
- 5.16%
- Min
- -1.46%
IR’s Net Profit Margin of 7.25% is aligned with the median group of its peers in the Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
AAL
3.93%
Passenger Airlines Industry
- Max
- 22.11%
- Q3
- 12.67%
- Median
- 8.27%
- Q1
- 4.07%
- Min
- -2.77%
AAL’s Operating Profit Margin of 3.93% 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.
IR
15.14%
Machinery Industry
- Max
- 27.20%
- Q3
- 15.91%
- Median
- 11.33%
- Q1
- 7.73%
- Min
- 0.23%
IR’s Operating Profit Margin of 15.14% is around the midpoint for the Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AAL | IR |
|---|---|---|
| Return on Equity (TTM) | 265.62% | 5.29% |
| Return on Assets (TTM) | 0.96% | 2.98% |
| Net Profit Margin (TTM) | 1.11% | 7.25% |
| Operating Profit Margin (TTM) | 3.93% | 15.14% |
| Gross Profit Margin (TTM) | 65.01% | 43.72% |
Financial Strength
Current Ratio (MRQ)
AAL
0.54
Passenger Airlines Industry
- Max
- 1.46
- Q3
- 0.91
- Median
- 0.68
- Q1
- 0.51
- Min
- 0.19
AAL’s Current Ratio of 0.54 aligns with the median group of the Passenger Airlines industry, indicating that its short-term liquidity is in line with its sector peers.
IR
2.16
Machinery Industry
- Max
- 3.27
- Q3
- 2.16
- Median
- 1.75
- Q1
- 1.32
- Min
- 0.70
IR’s Current Ratio of 2.16 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
AAL
157.71
Passenger Airlines Industry
- Max
- 10.23
- Q3
- 4.67
- Median
- 1.26
- Q1
- 0.81
- 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.
IR
0.47
Machinery Industry
- Max
- 1.49
- Q3
- 0.75
- Median
- 0.45
- Q1
- 0.23
- Min
- 0.00
IR’s Debt-to-Equity Ratio of 0.47 is typical for the Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
AAL
1.75
Passenger Airlines Industry
- Max
- 22.60
- Q3
- 17.27
- 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.
IR
6.23
Machinery Industry
- Max
- 67.55
- Q3
- 36.46
- Median
- 13.55
- Q1
- 7.73
- Min
- -1.43
In the lower quartile for the Machinery industry, IR’s Interest Coverage Ratio of 6.23 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | AAL | IR |
|---|---|---|
| Current Ratio (MRQ) | 0.54 | 2.16 |
| Quick Ratio (MRQ) | 0.39 | 1.51 |
| Debt-to-Equity Ratio (MRQ) | 157.71 | 0.47 |
| Interest Coverage Ratio (TTM) | 1.75 | 6.23 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
AAL
0.00%
Passenger Airlines Industry
- Max
- 7.00%
- Q3
- 3.61%
- Median
- 1.57%
- 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.
IR
0.11%
Machinery Industry
- Max
- 4.98%
- Q3
- 2.83%
- Median
- 1.89%
- Q1
- 1.17%
- Min
- 0.00%
IR’s Dividend Yield of 0.11% is in the lower quartile for the Machinery industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio (TTM)
AAL
0.00%
Passenger Airlines Industry
- Max
- 93.13%
- Q3
- 51.43%
- Median
- 14.52%
- 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.
IR
3.67%
Machinery Industry
- Max
- 209.29%
- Q3
- 102.41%
- Median
- 62.34%
- Q1
- 29.36%
- Min
- 0.00%
IR’s Dividend Payout Ratio of 3.67% is in the lower quartile for the Machinery industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
Dividend at a Glance
| Symbol | AAL | IR |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.11% |
| Dividend Payout Ratio (TTM) | 0.00% | 3.67% |
Valuation
Price-to-Earnings Ratio (TTM)
AAL
13.99
Passenger Airlines Industry
- Max
- 13.99
- Q3
- 10.90
- Median
- 8.70
- Q1
- 6.40
- Min
- 2.58
A P/E Ratio of 13.99 places AAL in the upper quartile for the Passenger Airlines industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
IR
53.96
Machinery Industry
- Max
- 46.28
- Q3
- 29.52
- Median
- 24.18
- Q1
- 16.92
- Min
- 7.99
At 53.96, IR’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Machinery industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Price-to-Sales Ratio (TTM)
AAL
0.16
Passenger Airlines Industry
- Max
- 1.48
- Q3
- 0.83
- Median
- 0.61
- Q1
- 0.37
- Min
- 0.08
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.
IR
3.91
Machinery Industry
- Max
- 5.25
- Q3
- 2.82
- Median
- 1.74
- Q1
- 0.99
- Min
- 0.27
IR’s P/S Ratio of 3.91 is in the upper echelon for the Machinery 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.
Price-to-Book Ratio (MRQ)
AAL
75.06
Passenger Airlines Industry
- Max
- 3.44
- Q3
- 3.03
- Median
- 2.07
- Q1
- 1.28
- Min
- 0.49
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.
IR
3.24
Machinery Industry
- Max
- 7.18
- Q3
- 4.18
- Median
- 2.71
- Q1
- 1.54
- Min
- 0.52
IR’s P/B Ratio of 3.24 is within the conventional range for the Machinery industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | AAL | IR |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 13.99 | 53.96 |
| Price-to-Sales Ratio (TTM) | 0.16 | 3.91 |
| Price-to-Book Ratio (MRQ) | 75.06 | 3.24 |
| Price-to-Free Cash Flow Ratio (TTM) | 4.02 | 23.36 |
