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

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

Company Profile

SymbolAALUNP
Company NameAmerican Airlines Group Inc.Union Pacific Corporation
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryPassenger AirlinesGround Transportation
Market Capitalization8.45 billion USD133.84 billion USD
ExchangeNasdaqGSNYSE
Listing DateSeptember 27, 2005January 2, 1980
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolAALUNP
5-Day Price Return-0.16%1.88%
13-Week Price Return7.93%-1.66%
26-Week Price Return-18.68%-10.08%
52-Week Price Return24.15%-8.29%
Month-to-Date Return11.40%1.67%
Year-to-Date Return-26.56%-1.03%
10-Day Avg. Volume60.62M3.88M
3-Month Avg. Volume62.18M3.69M
3-Month Volatility53.18%19.10%
Beta1.401.07

Profitability

Return on Equity (TTM)

AAL

265.62%

Passenger Airlines Industry

Max
49.96%
Q3
28.15%
Median
15.41%
Q1
8.29%
Min
-11.01%

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.

UNP

42.18%

Ground Transportation Industry

Max
22.11%
Q3
13.84%
Median
9.66%
Q1
7.55%
Min
0.36%

UNP’s Return on Equity of 42.18% is exceptionally high, placing it well beyond the typical range for the Ground Transportation industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

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

Net Profit Margin (TTM)

AAL

1.05%

Passenger Airlines Industry

Max
17.65%
Q3
8.90%
Median
5.80%
Q1
2.02%
Min
-3.12%

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.

UNP

28.43%

Ground Transportation Industry

Max
32.20%
Q3
18.59%
Median
7.11%
Q1
4.13%
Min
-10.38%

A Net Profit Margin of 28.43% places UNP in the upper quartile for the Ground Transportation industry, signifying strong profitability and more effective cost management than most of its peers.

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

Operating Profit Margin (TTM)

AAL

3.82%

Passenger Airlines Industry

Max
22.47%
Q3
12.33%
Median
8.62%
Q1
4.43%
Min
-2.88%

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.

UNP

40.33%

Ground Transportation Industry

Max
41.31%
Q3
23.16%
Median
11.33%
Q1
6.82%
Min
-12.08%

An Operating Profit Margin of 40.33% places UNP in the upper quartile for the Ground Transportation industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

SymbolAALUNP
Return on Equity (TTM)265.62%42.18%
Return on Assets (TTM)0.90%10.19%
Net Profit Margin (TTM)1.05%28.43%
Operating Profit Margin (TTM)3.82%40.33%
Gross Profit Margin (TTM)64.95%79.89%

Financial Strength

Current Ratio (MRQ)

AAL

0.58

Passenger Airlines Industry

Max
1.46
Q3
0.94
Median
0.76
Q1
0.54
Min
0.17

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.

UNP

0.65

Ground Transportation Industry

Max
2.03
Q3
1.26
Median
0.89
Q1
0.73
Min
0.38

UNP’s Current Ratio of 0.65 falls into the lower quartile for the Ground Transportation industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

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

Debt-to-Equity Ratio (MRQ)

AAL

157.71

Passenger Airlines Industry

Max
9.80
Q3
4.82
Median
1.30
Q1
0.89
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.

UNP

2.02

Ground Transportation Industry

Max
2.51
Q3
1.51
Median
1.06
Q1
0.47
Min
0.00

UNP’s leverage is in the upper quartile of the Ground Transportation industry, with a Debt-to-Equity Ratio of 2.02. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

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

Interest Coverage Ratio (TTM)

AAL

1.75

Passenger Airlines Industry

Max
22.60
Q3
16.29
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.

UNP

8.23

Ground Transportation Industry

Max
51.07
Q3
22.54
Median
7.94
Q1
2.72
Min
-24.57

UNP’s Interest Coverage Ratio of 8.23 is positioned comfortably within the norm for the Ground Transportation industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

SymbolAALUNP
Current Ratio (MRQ)0.580.65
Quick Ratio (MRQ)0.440.53
Debt-to-Equity Ratio (MRQ)157.712.02
Interest Coverage Ratio (TTM)1.758.23

Growth

Revenue Growth

AAL vs. UNP: 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. UNP: 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
6.71%
Q3
3.95%
Median
1.10%
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.

UNP

2.40%

Ground Transportation Industry

Max
5.44%
Q3
2.49%
Median
1.53%
Q1
0.39%
Min
0.00%

UNP’s Dividend Yield of 2.40% is consistent with its peers in the Ground Transportation industry, providing a dividend return that is standard for its sector.

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

Dividend Payout Ratio (TTM)

AAL

0.00%

Passenger Airlines Industry

Max
71.59%
Q3
38.54%
Median
8.16%
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.

UNP

46.49%

Ground Transportation Industry

Max
137.07%
Q3
74.71%
Median
41.16%
Q1
15.12%
Min
0.00%

UNP’s Dividend Payout Ratio of 46.49% is within the typical range for the Ground Transportation industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolAALUNP
Dividend Yield (TTM)0.00%2.40%
Dividend Payout Ratio (TTM)0.00%46.49%

Valuation

Price-to-Earnings Ratio (TTM)

AAL

15.38

Passenger Airlines Industry

Max
13.29
Q3
11.94
Median
8.78
Q1
7.42
Min
3.07

At 15.38, AAL’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Passenger Airlines industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

UNP

19.36

Ground Transportation Industry

Max
42.59
Q3
24.86
Median
16.38
Q1
12.79
Min
4.37

UNP’s P/E Ratio of 19.36 is within the middle range for the Ground Transportation 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. UNP: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Passenger Airlines and Ground Transportation industry benchmarks.

Price-to-Sales Ratio (TTM)

AAL

0.16

Passenger Airlines Industry

Max
1.09
Q3
0.74
Median
0.61
Q1
0.44
Min
0.09

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.

UNP

5.51

Ground Transportation Industry

Max
4.02
Q3
2.20
Median
1.23
Q1
0.87
Min
0.22

With a P/S Ratio of 5.51, UNP trades at a valuation that eclipses even the highest in the Ground Transportation industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

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

Price-to-Book Ratio (MRQ)

AAL

75.06

Passenger Airlines Industry

Max
3.44
Q3
2.89
Median
1.84
Q1
1.22
Min
0.56

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.

UNP

8.46

Ground Transportation Industry

Max
4.95
Q3
2.78
Median
1.38
Q1
1.17
Min
0.64

At 8.46, UNP’s P/B Ratio is at an extreme premium to the Ground Transportation 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.

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

Valuation at a Glance

SymbolAALUNP
Price-to-Earnings Ratio (TTM)15.3819.36
Price-to-Sales Ratio (TTM)0.165.51
Price-to-Book Ratio (MRQ)75.068.46
Price-to-Free Cash Flow Ratio (TTM)4.1621.45