AAL vs. TDG: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AAL and TDG, 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
TDG stands out with 79.08 billion USD in market value—about 10.67× AAL’s market cap of 7.41 billion USD.
With betas of 1.32 for AAL and 1.09 for TDG, both show similar volatility profiles relative to the overall market.
| Symbol | AAL | TDG |
|---|---|---|
| Company Name | American Airlines Group Inc. | TransDigm Group Incorporated |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Airlines, Airports & Air Services | Aerospace & Defense |
| CEO | Mr. Robert D. Isom Jr. | Dr. Kevin M. Stein Ph.D. |
| Price | 11.24 USD | 1,407.98 USD |
| Market Cap | 7.41 billion USD | 79.08 billion USD |
| Beta | 1.32 | 1.09 |
| Exchange | NASDAQ | NYSE |
| IPO Date | September 27, 2005 | March 15, 2006 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AAL and TDG 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 TDG based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- Book value is underwater for both AAL (-1.64) and TDG (-14.42), meaning liabilities exceed assets—signaling a critical solvency risk for both companies.
| Symbol | AAL | TDG |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 10.81 | 43.03 |
| Forward PEG Ratio (TTM) | 0.20 | 2.80 |
| Price-to-Sales Ratio (P/S, TTM) | 0.14 | 9.43 |
| Price-to-Book Ratio (P/B, TTM) | -1.64 | -14.42 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 2.11 | 41.60 |
| EV-to-EBITDA (TTM) | 10.27 | 23.99 |
| EV-to-Sales (TTM) | 0.80 | 12.13 |
| EV-to-Free Cash Flow (TTM) | 12.27 | 53.50 |
Dividend Comparison
AAL offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while TDG provides a 5.33% dividend yield, giving investors a steady income stream.
| Symbol | AAL | TDG |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 5.33% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AAL and TDG, 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 TDG at 3.09 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 TDG at 2.12 maintains a comfortable buffer of liquid assets.
- Both AAL (debt-to-equity ratio -8.12) and TDG (-4.42) exhibit negative shareholder equity—assets fall short of liabilities—signaling serious balance-sheet stress.
- TDG carries a debt-to-assets ratio of 1.14, suggesting substantial asset funding via debt, while AAL at 0.58 opts for a more conservative financing structure.
| Symbol | AAL | TDG |
|---|---|---|
| Current Ratio (TTM) | 0.52 | 3.09 |
| Quick Ratio (TTM) | 0.42 | 2.12 |
| Debt-to-Equity Ratio (TTM) | -8.12 | -4.42 |
| Debt-to-Assets Ratio (TTM) | 0.58 | 1.14 |
| Interest Coverage Ratio (TTM) | 1.25 | 2.73 |