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

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

Company Profile

SymbolAALTDG
Company NameAmerican Airlines Group Inc.TransDigm Group Incorporated
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryPassenger AirlinesAerospace & Defense
Market Capitalization7.64 billion USD72.63 billion USD
ExchangeNasdaqGSNYSE
Listing DateSeptember 27, 2005March 15, 2006
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of AAL and TDG 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. TDG: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAALTDG
5-Day Price Return1.76%-0.04%
13-Week Price Return-0.94%-15.37%
26-Week Price Return9.76%-6.83%
52-Week Price Return7.82%-10.65%
Month-to-Date Return3.02%-2.21%
Year-to-Date Return-33.56%1.70%
10-Day Avg. Volume86.25M0.26M
3-Month Avg. Volume69.42M0.32M
3-Month Volatility51.07%32.04%
Beta1.270.94

Profitability

Return on Equity (TTM)

AAL

265.62%

Passenger Airlines Industry

Max
49.96%
Q3
27.29%
Median
16.68%
Q1
8.40%
Min
-15.23%

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.

TDG

37.11%

Aerospace & Defense Industry

Max
37.11%
Q3
20.14%
Median
11.72%
Q1
6.30%
Min
-6.24%

In the upper quartile for the Aerospace & Defense industry, TDG’s Return on Equity of 37.11% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AAL vs. TDG: A comparison of their Return on Equity (TTM) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Net Profit Margin (TTM)

AAL

1.05%

Passenger Airlines Industry

Max
16.00%
Q3
8.99%
Median
6.35%
Q1
3.18%
Min
-4.22%

Falling into the lower quartile for the Passenger Airlines industry, AAL’s Net Profit Margin of 1.05% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

TDG

22.52%

Aerospace & Defense Industry

Max
13.66%
Q3
8.61%
Median
6.59%
Q1
4.92%
Min
1.01%

TDG’s Net Profit Margin of 22.52% is exceptionally high, placing it well beyond the typical range for the Aerospace & Defense industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

AAL vs. TDG: A comparison of their Net Profit Margin (TTM) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Operating Profit Margin (TTM)

AAL

3.82%

Passenger Airlines Industry

Max
22.47%
Q3
12.67%
Median
8.62%
Q1
4.63%
Min
-2.30%

AAL’s Operating Profit Margin of 3.82% 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.

TDG

45.94%

Aerospace & Defense Industry

Max
22.35%
Q3
12.83%
Median
9.29%
Q1
6.38%
Min
-2.15%

TDG’s Operating Profit Margin of 45.94% is exceptionally high, placing it well above the typical range for the Aerospace & Defense industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

AAL vs. TDG: A comparison of their Operating Profit Margin (TTM) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Profitability at a Glance

SymbolAALTDG
Return on Equity (TTM)265.62%37.11%
Return on Assets (TTM)0.90%8.43%
Net Profit Margin (TTM)1.05%22.52%
Operating Profit Margin (TTM)3.82%45.94%
Gross Profit Margin (TTM)64.95%60.12%

Financial Strength

Current Ratio (MRQ)

AAL

0.58

Passenger Airlines Industry

Max
1.44
Q3
0.91
Median
0.73
Q1
0.54
Min
0.18

AAL’s Current Ratio of 0.58 aligns with the median group of the Passenger Airlines industry, indicating that its short-term liquidity is in line with its sector peers.

TDG

3.13

Aerospace & Defense Industry

Max
3.35
Q3
2.03
Median
1.24
Q1
1.04
Min
0.77

TDG’s Current Ratio of 3.13 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

AAL vs. TDG: A comparison of their Current Ratio (MRQ) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AAL

157.71

Passenger Airlines Industry

Max
10.23
Q3
5.04
Median
1.27
Q1
0.82
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.

TDG

5.41

Aerospace & Defense Industry

Max
1.72
Q3
0.96
Median
0.63
Q1
0.37
Min
0.03

With a Debt-to-Equity Ratio of 5.41, TDG operates with exceptionally high leverage compared to the Aerospace & Defense industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

AAL vs. TDG: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Passenger Airlines and Aerospace & Defense 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.

TDG

2.72

Aerospace & Defense Industry

Max
36.57
Q3
19.08
Median
7.25
Q1
2.65
Min
-7.63

TDG’s Interest Coverage Ratio of 2.72 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

AAL vs. TDG: A comparison of their Interest Coverage Ratio (TTM) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Financial Strength at a Glance

SymbolAALTDG
Current Ratio (MRQ)0.583.13
Quick Ratio (MRQ)0.442.07
Debt-to-Equity Ratio (MRQ)157.715.41
Interest Coverage Ratio (TTM)1.752.72

Growth

Revenue Growth

AAL vs. TDG: 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. TDG: 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
7.04%
Q3
3.76%
Median
1.72%
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.

TDG

6.04%

Aerospace & Defense Industry

Max
2.72%
Q3
1.45%
Median
0.48%
Q1
0.08%
Min
0.00%

TDG’s Dividend Yield of 6.04% is exceptionally high, placing it well above the typical range for the Aerospace & Defense 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. TDG: A comparison of their Dividend Yield (TTM) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Dividend Payout Ratio (TTM)

AAL

0.00%

Passenger Airlines Industry

Max
99.73%
Q3
50.30%
Median
23.18%
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.

TDG

891.68%

Aerospace & Defense Industry

Max
110.40%
Q3
50.43%
Median
17.11%
Q1
0.46%
Min
0.00%

At 891.68%, TDG’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Aerospace & Defense industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.

AAL vs. TDG: A comparison of their Dividend Payout Ratio (TTM) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Dividend at a Glance

SymbolAALTDG
Dividend Yield (TTM)0.00%6.04%
Dividend Payout Ratio (TTM)0.00%891.68%

Valuation

Price-to-Earnings Ratio (TTM)

AAL

13.30

Passenger Airlines Industry

Max
18.74
Q3
11.24
Median
8.33
Q1
6.11
Min
2.97

A P/E Ratio of 13.30 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.

TDG

37.65

Aerospace & Defense Industry

Max
67.20
Q3
55.74
Median
33.28
Q1
27.49
Min
15.02

TDG’s P/E Ratio of 37.65 is within the middle range for the Aerospace & Defense 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. TDG: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Price-to-Sales Ratio (TTM)

AAL

0.14

Passenger Airlines Industry

Max
1.07
Q3
0.73
Median
0.62
Q1
0.40
Min
0.09

In the lower quartile for the Passenger Airlines industry, AAL’s P/S Ratio of 0.14 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.

TDG

8.48

Aerospace & Defense Industry

Max
9.06
Q3
4.87
Median
2.47
Q1
1.61
Min
0.33

TDG’s P/S Ratio of 8.48 is in the upper echelon for the Aerospace & Defense industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

AAL vs. TDG: A comparison of their Price-to-Sales Ratio (TTM) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Price-to-Book Ratio (MRQ)

AAL

75.06

Passenger Airlines Industry

Max
3.47
Q3
3.19
Median
1.94
Q1
1.28
Min
0.50

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.

TDG

10.13

Aerospace & Defense Industry

Max
14.90
Q3
8.93
Median
4.70
Q1
3.03
Min
0.83

TDG’s P/B Ratio of 10.13 is in the upper tier for the Aerospace & Defense industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

AAL vs. TDG: A comparison of their Price-to-Book Ratio (MRQ) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Valuation at a Glance

SymbolAALTDG
Price-to-Earnings Ratio (TTM)13.3037.65
Price-to-Sales Ratio (TTM)0.148.48
Price-to-Book Ratio (MRQ)75.0610.13
Price-to-Free Cash Flow Ratio (TTM)3.6038.16