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

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Here’s a clear look at AAL and SWK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolAALSWK
Company NameAmerican Airlines Group Inc.Stanley Black & Decker, Inc.
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryPassenger AirlinesMachinery
Market Capitalization8.31 billion USD10.14 billion USD
ExchangeNasdaqGSNYSE
Listing DateSeptember 27, 2005March 17, 1980
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of AAL and SWK 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.

AAL vs. SWK: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAALSWK
5-Day Price Return-4.13%-3.37%
13-Week Price Return-3.11%-11.36%
26-Week Price Return3.74%-11.07%
52-Week Price Return-8.92%-23.79%
Month-to-Date Return-2.82%-3.06%
Year-to-Date Return-26.79%-18.23%
10-Day Avg. Volume52.31M1.99M
3-Month Avg. Volume70.06M2.03M
3-Month Volatility44.95%36.33%
Beta1.271.22

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.

SWK

4.93%

Machinery Industry

Max
30.85%
Q3
19.99%
Median
12.37%
Q1
8.44%
Min
-7.69%

SWK’s Return on Equity of 4.93% 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.

AAL vs. SWK: A comparison of their Return on Equity (TTM) against their respective Passenger Airlines and Machinery industry benchmarks.

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.

SWK

2.89%

Machinery Industry

Max
19.28%
Q3
10.99%
Median
7.89%
Q1
5.16%
Min
-1.46%

Falling into the lower quartile for the Machinery industry, SWK’s Net Profit Margin of 2.89% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

AAL vs. SWK: A comparison of their Net Profit Margin (TTM) against their respective Passenger Airlines and Machinery industry benchmarks.

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.

SWK

4.13%

Machinery Industry

Max
27.20%
Q3
15.91%
Median
11.33%
Q1
7.73%
Min
0.23%

SWK’s Operating Profit Margin of 4.13% is in the lower quartile for the Machinery industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

AAL vs. SWK: A comparison of their Operating Profit Margin (TTM) against their respective Passenger Airlines and Machinery industry benchmarks.

Profitability at a Glance

SymbolAALSWK
Return on Equity (TTM)265.62%4.93%
Return on Assets (TTM)0.96%1.98%
Net Profit Margin (TTM)1.11%2.89%
Operating Profit Margin (TTM)3.93%4.13%
Gross Profit Margin (TTM)65.01%30.14%

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.

SWK

1.11

Machinery Industry

Max
3.27
Q3
2.16
Median
1.75
Q1
1.32
Min
0.70

SWK’s Current Ratio of 1.11 falls into the lower quartile for the Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AAL vs. SWK: A comparison of their Current Ratio (MRQ) against their respective Passenger Airlines and Machinery industry benchmarks.

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.

SWK

0.74

Machinery Industry

Max
1.49
Q3
0.75
Median
0.45
Q1
0.23
Min
0.00

SWK’s Debt-to-Equity Ratio of 0.74 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.

AAL vs. SWK: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Passenger Airlines and Machinery industry benchmarks.

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.

SWK

1.75

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, SWK’s Interest Coverage Ratio of 1.75 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

AAL vs. SWK: A comparison of their Interest Coverage Ratio (TTM) against their respective Passenger Airlines and Machinery industry benchmarks.

Financial Strength at a Glance

SymbolAALSWK
Current Ratio (MRQ)0.541.11
Quick Ratio (MRQ)0.390.29
Debt-to-Equity Ratio (MRQ)157.710.74
Interest Coverage Ratio (TTM)1.751.75

Growth

Revenue Growth

AAL vs. SWK: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AAL vs. SWK: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

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.

SWK

8.51%

Machinery Industry

Max
4.98%
Q3
2.83%
Median
1.89%
Q1
1.17%
Min
0.00%

SWK’s Dividend Yield of 8.51% is exceptionally high, placing it well above the typical range for the Machinery industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.

AAL vs. SWK: A comparison of their Dividend Yield (TTM) against their respective Passenger Airlines and Machinery industry benchmarks.

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.

SWK

197.33%

Machinery Industry

Max
209.29%
Q3
102.41%
Median
62.34%
Q1
29.36%
Min
0.00%

SWK’s Dividend Payout Ratio of 197.33% is in the upper quartile for the Machinery industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

AAL vs. SWK: A comparison of their Dividend Payout Ratio (TTM) against their respective Passenger Airlines and Machinery industry benchmarks.

Dividend at a Glance

SymbolAALSWK
Dividend Yield (TTM)0.00%8.51%
Dividend Payout Ratio (TTM)0.00%197.33%

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.

SWK

23.18

Machinery Industry

Max
46.28
Q3
29.52
Median
24.18
Q1
16.92
Min
7.99

SWK’s P/E Ratio of 23.18 is within the middle range for the Machinery industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AAL vs. SWK: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Passenger Airlines and Machinery industry benchmarks.

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.

SWK

0.67

Machinery Industry

Max
5.25
Q3
2.82
Median
1.74
Q1
0.99
Min
0.27

In the lower quartile for the Machinery industry, SWK’s P/S Ratio of 0.67 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.

AAL vs. SWK: A comparison of their Price-to-Sales Ratio (TTM) against their respective Passenger Airlines and Machinery industry benchmarks.

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.

SWK

1.27

Machinery Industry

Max
7.18
Q3
4.18
Median
2.71
Q1
1.54
Min
0.52

SWK’s P/B Ratio of 1.27 is in the lower quartile for the Machinery industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

AAL vs. SWK: A comparison of their Price-to-Book Ratio (MRQ) against their respective Passenger Airlines and Machinery industry benchmarks.

Valuation at a Glance

SymbolAALSWK
Price-to-Earnings Ratio (TTM)13.9923.18
Price-to-Sales Ratio (TTM)0.160.67
Price-to-Book Ratio (MRQ)75.061.27
Price-to-Free Cash Flow Ratio (TTM)4.026.33