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

Company Overview

PH’s market capitalization of 85.41 billion USD is significantly greater than AAL’s 7.76 billion USD, highlighting its more substantial market valuation.

With betas of 1.38 for AAL and 1.34 for PH, both stocks show similar sensitivity to overall market movements.

Performance Comparison

This chart compares the performance of AAL and PH over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of AAL and PH. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• AAL’s Price-to-Book (P/B) ratio of -1.72 indicates a negative book value, which is a serious red flag for its financial health. In contrast, PH has a very high P/B ratio of 6.43, suggesting the market values its net assets at a significant premium, possibly due to strong intangible assets or expectations of high future growth.

Dividend Comparison

AAL currently offers no dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while PH provides a 1.00% dividend yield, offering investors a component of income return.

Financial Strength Metrics Comparison

This section evaluates the financial strength of AAL and PH. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• AAL’s current ratio of 0.52 is considered low. This may signal potential challenges with its short-term liquidity, implying that its current assets might offer a limited buffer for meeting its immediate debts and could affect its capacity to smoothly manage upcoming financial duties.
• AAL’s quick ratio of 0.42 is low. This suggests potential difficulty in meeting its immediate financial responsibilities with its most liquid assets (excluding inventory), possibly indicating a greater dependence on inventory turnover to service short-term debts.
• AAL’s Debt-to-Equity (D/E) ratio of -8.12 indicates negative shareholder equity. This is a significant red flag, suggesting its liabilities exceed its assets and posing a considerable threat to its long-term financial health.