AAL vs. LII: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AAL and LII, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
LII’s market capitalization of 21.44 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 1.15 for LII, both stocks show similar sensitivity to overall market movements.
| Symbol | AAL | LII |
|---|---|---|
| Company Name | American Airlines Group Inc. | Lennox International Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Airlines, Airports & Air Services | Construction |
| CEO | Robert D. Isom Jr. | Alok Maskara |
| Price | 11.69 USD | 604.22 USD |
| Market Cap | 7.71 billion USD | 21.44 billion USD |
| Beta | 1.38 | 1.15 |
| Exchange | NASDAQ | NYSE |
| IPO Date | September 27, 2005 | July 29, 1999 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AAL and LII 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.
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.
LII
105.85%
Construction Industry
- Max
- 40.76%
- Q3
- 26.03%
- Median
- 16.38%
- Q1
- 5.66%
- Min
- -4.01%
LII’s Return on Equity of 105.85% is exceptionally high, placing it well beyond the typical range for the Construction industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
LII
32.58%
Construction Industry
- Max
- 27.38%
- Q3
- 15.45%
- Median
- 9.91%
- Q1
- 5.86%
- Min
- 2.28%
LII’s Return on Invested Capital of 32.58% is exceptionally high, placing it well beyond the typical range for the Construction industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
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.
LII
14.96%
Construction Industry
- Max
- 24.94%
- Q3
- 14.61%
- Median
- 10.07%
- Q1
- 2.23%
- Min
- -9.49%
A Net Profit Margin of 14.96% places LII in the upper quartile for the Construction industry, signifying strong profitability and more effective cost management than most of its peers.
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.
LII
19.07%
Construction Industry
- Max
- 24.04%
- Q3
- 19.17%
- Median
- 13.63%
- Q1
- 7.69%
- Min
- -7.88%
LII’s Operating Profit Margin of 19.07% is around the midpoint for the Construction industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AAL | LII |
|---|---|---|
| Return on Equity (TTM) | -15.15% | 105.85% |
| Return on Assets (TTM) | 1.09% | 23.24% |
| Return on Invested Capital (TTM) | 4.12% | 32.58% |
| Net Profit Margin (TTM) | 1.26% | 14.96% |
| Operating Profit Margin (TTM) | 4.31% | 19.07% |
| Gross Profit Margin (TTM) | 23.28% | 32.80% |
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.
LII
1.43
Construction Industry
- Max
- 4.22
- Q3
- 2.59
- Median
- 1.84
- Q1
- 1.44
- Min
- 0.96
LII’s Current Ratio of 1.43 falls into the lower quartile for the Construction industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
LII
1.75
Construction Industry
- Max
- 1.75
- Q3
- 1.15
- Median
- 0.84
- Q1
- 0.56
- Min
- 0.05
LII’s leverage is in the upper quartile of the Construction industry, with a Debt-to-Equity Ratio of 1.75. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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.
LII
30.91
Construction Industry
- Max
- 30.91
- Q3
- 15.60
- Median
- 7.16
- Q1
- 2.73
- Min
- -4.26
LII’s Interest Coverage Ratio of 30.91 is in the upper quartile for the Construction industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AAL | LII |
|---|---|---|
| Current Ratio (TTM) | 0.52 | 1.43 |
| Quick Ratio (TTM) | 0.42 | 0.74 |
| Debt-to-Equity Ratio (TTM) | -8.12 | 1.75 |
| Debt-to-Asset Ratio (TTM) | 0.58 | 0.43 |
| Net Debt-to-EBITDA Ratio (TTM) | 8.51 | 1.19 |
| Interest Coverage Ratio (TTM) | 1.25 | 30.91 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AAL and LII. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
LII
0.79%
Construction Industry
- Max
- 2.43%
- Q3
- 1.20%
- Median
- 0.59%
- Q1
- 0.00%
- Min
- 0.00%
LII’s Dividend Yield of 0.79% is consistent with its peers in the Construction industry, providing a dividend return that is standard for its sector.
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.
LII
20.19%
Construction Industry
- Max
- 84.31%
- Q3
- 28.17%
- Median
- 11.69%
- Q1
- 0.00%
- Min
- 0.00%
LII’s Dividend Payout Ratio of 20.19% is within the typical range for the Construction industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AAL | LII |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.79% |
| Dividend Payout Ratio (TTM) | 0.00% | 20.19% |
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.
LII
26.72
Construction Industry
- Max
- 52.50
- Q3
- 32.30
- Median
- 22.66
- Q1
- 14.68
- Min
- 9.62
LII’s P/E Ratio of 26.72 is within the middle range for the Construction industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
LII
2.69
Construction Industry
- Max
- 4.11
- Q3
- 2.42
- Median
- 1.60
- Q1
- 1.15
- Min
- 0.27
The Forward PEG Ratio is often not a primary valuation metric in the Construction industry.
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.
LII
4.00
Construction Industry
- Max
- 5.26
- Q3
- 3.38
- Median
- 1.63
- Q1
- 0.99
- Min
- 0.09
LII’s P/S Ratio of 4.00 is in the upper echelon for the Construction 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
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.
LII
25.16
Construction Industry
- Max
- 12.88
- Q3
- 6.91
- Median
- 3.04
- Q1
- 1.93
- Min
- 0.71
At 25.16, LII’s P/B Ratio is at an extreme premium to the Construction 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.
Valuation at a Glance
| Symbol | AAL | LII |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 11.24 | 26.72 |
| Forward PEG Ratio (TTM) | 0.21 | 2.69 |
| Price-to-Sales Ratio (P/S, TTM) | 0.14 | 4.00 |
| Price-to-Book Ratio (P/B, TTM) | -1.71 | 25.16 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 2.19 | 27.73 |
| EV-to-EBITDA (TTM) | 10.34 | 21.29 |
| EV-to-Sales (TTM) | 0.80 | 4.23 |