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

Updated

Here’s a clear look at AAL and RTX, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

RTX stands out with 180.29 billion USD in market value—about 24.32× AAL’s market cap of 7.41 billion USD.

AAL’s beta of 1.32 points to much larger expected swings compared to RTX’s calmer 0.59, suggesting both higher upside and downside potential.

SymbolAALRTX
Company NameAmerican Airlines Group Inc.RTX Corporation
CountryUSUS
SectorIndustrialsIndustrials
IndustryAirlines, Airports & Air ServicesAerospace & Defense
CEOMr. Robert D. Isom Jr.Mr. Christopher T. Calio
Price11.24 USD134.95 USD
Market Cap7.41 billion USD180.29 billion USD
Beta1.320.59
ExchangeNASDAQNYSE
IPO DateSeptember 27, 2005September 15, 1952
ADRNoNo

Performance Comparison

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

  • AAL has a negative P/B ratio of -1.64, indicating its liabilities exceed assets (negative equity). RTX, with a P/B of 2.93, maintains positive shareholder equity.
SymbolAALRTX
Price-to-Earnings Ratio (P/E, TTM)10.8139.23
Forward PEG Ratio (TTM)0.204.34
Price-to-Sales Ratio (P/S, TTM)0.142.21
Price-to-Book Ratio (P/B, TTM)-1.642.93
Price-to-Free Cash Flow Ratio (P/FCF, TTM)2.1134.89
EV-to-EBITDA (TTM)10.2716.94
EV-to-Sales (TTM)0.802.65
EV-to-Free Cash Flow (TTM)12.2741.89

Dividend Comparison

AAL offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while RTX provides a 1.40% dividend yield, giving investors a steady income stream.

SymbolAALRTX
Dividend Yield (TTM)0.00%1.40%

Financial Strength Metrics Comparison

This section dives into the financial resilience of AAL and RTX, 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 RTX at 1.01 comfortably covers its short-term obligations.
  • Both AAL (quick ratio 0.42) and RTX (quick ratio 0.75) fall below 0.8, meaning their most liquid assets—excluding inventory—aren’t enough to meet short-term obligations. This could force them to rely on receivables, inventory turn, or external financing.
  • AAL has negative equity (debt-to-equity ratio -8.12), an unusual warning sign, while RTX at 0.67 maintains a conventional debt-to-equity balance.
SymbolAALRTX
Current Ratio (TTM)0.521.01
Quick Ratio (TTM)0.420.75
Debt-to-Equity Ratio (TTM)-8.120.67
Debt-to-Assets Ratio (TTM)0.580.25
Interest Coverage Ratio (TTM)1.253.70