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

Company Overview

With AAL at 7.41 billion USD and PONY at 6.25 billion USD, their market capitalizations sit in the same ballpark.

PONY carries a higher beta at 4.02, indicating it’s more sensitive to market moves, while AAL remains steadier at 1.32.

Performance Comparison

This chart compares the performance of AAL and PONY 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 PONY based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

• PONY shows a negative P/E of -12.16, highlighting a year of losses, whereas AAL at 10.81 trades on solid profitability.
• PONY shows a negative forward PEG of -0.44, signaling expected earnings contraction, while AAL at 0.20 maintains analysts’ projections for stable or improved profits.
• AAL has a negative P/B ratio of -1.64, indicating its liabilities exceed assets (negative equity). PONY, with a P/B of 3.31, maintains positive shareholder equity.
• PONY reports a negative Price-to-Free Cash Flow ratio of -70.25, showing a cash flow shortfall that could threaten its operational sustainability, while AAL at 2.11 maintains positive cash flow.

Dividend Comparison

Neither AAL nor PONY currently pays a dividend yield; this often indicates they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.

Financial Strength Metrics Comparison

This section dives into the financial resilience of AAL and PONY, 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 PONY at 11.77 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 PONY at 11.77 maintains a comfortable buffer of liquid assets.
• AAL has negative equity (debt-to-equity ratio -8.12), an unusual warning sign, while PONY at 0.01 maintains a conventional debt-to-equity balance.
• AAL meets its interest obligations (ratio 1.25). In stark contrast, PONY’s negative ratio (-48.96) means its operating earnings (EBIT) don't cover basic operations, let alone interest, signaling serious financial trouble.