AAL vs. UNP: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AAL and UNP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
UNP’s market capitalization of 141.17 billion USD is significantly greater than AAL’s 7.71 billion USD, highlighting its more substantial market valuation.
With betas of 1.38 for AAL and 1.05 for UNP, both stocks show similar sensitivity to overall market movements.
| Symbol | AAL | UNP |
|---|---|---|
| Company Name | American Airlines Group Inc. | Union Pacific Corporation |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Airlines, Airports & Air Services | Railroads |
| CEO | Robert D. Isom Jr. | Vincenzo James Vena |
| Price | 11.69 USD | 236.28 USD |
| Market Cap | 7.71 billion USD | 141.17 billion USD |
| Beta | 1.38 | 1.05 |
| Exchange | NASDAQ | NYSE |
| IPO Date | September 27, 2005 | January 2, 1980 |
| ADR | No | No |
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.
Profitability
Return on Equity
AAL
-15.15%
Airlines, Airports & Air Services Industry
- Max
- 42.21%
- Q3
- 26.98%
- Median
- 13.01%
- Q1
- 0.37%
- Min
- -17.14%
AAL has a negative Return on Equity of -15.15%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
UNP
40.80%
Railroads Industry
- Max
- 40.80%
- Q3
- 24.36%
- Median
- 18.32%
- Q1
- 11.84%
- Min
- 8.37%
In the upper quartile for the Railroads industry, UNP’s Return on Equity of 40.80% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
AAL
4.12%
Airlines, Airports & Air Services Industry
- Max
- 17.34%
- Q3
- 13.78%
- Median
- 4.53%
- Q1
- 1.05%
- Min
- -13.54%
AAL’s Return on Invested Capital of 4.12% is in line with the norm for the Airlines, Airports & Air Services industry, reflecting a standard level of efficiency in generating profits from its capital base.
UNP
11.47%
Railroads Industry
- Max
- 11.47%
- Q3
- 9.66%
- Median
- 9.08%
- Q1
- 7.36%
- Min
- 4.32%
In the upper quartile for the Railroads industry, UNP’s Return on Invested Capital of 11.47% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
AAL
1.26%
Airlines, Airports & Air Services Industry
- Max
- 24.88%
- Q3
- 9.50%
- Median
- 3.91%
- Q1
- -1.02%
- Min
- -10.56%
AAL’s Net Profit Margin of 1.26% is aligned with the median group of its peers in the Airlines, Airports & Air Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
UNP
27.77%
Railroads Industry
- Max
- 27.77%
- Q3
- 26.50%
- Median
- 24.33%
- Q1
- 9.34%
- Min
- 4.79%
A Net Profit Margin of 27.77% places UNP in the upper quartile for the Railroads industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
AAL
4.31%
Airlines, Airports & Air Services Industry
- Max
- 22.38%
- Q3
- 14.22%
- Median
- 9.66%
- Q1
- -0.09%
- Min
- -12.58%
AAL’s Operating Profit Margin of 4.31% is around the midpoint for the Airlines, Airports & Air Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
UNP
39.99%
Railroads Industry
- Max
- 41.08%
- Q3
- 37.86%
- Median
- 35.40%
- Q1
- 15.99%
- Min
- 10.85%
An Operating Profit Margin of 39.99% places UNP in the upper quartile for the Railroads industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AAL | UNP |
|---|---|---|
| Return on Equity (TTM) | -15.15% | 40.80% |
| Return on Assets (TTM) | 1.09% | 9.83% |
| Return on Invested Capital (TTM) | 4.12% | 11.47% |
| Net Profit Margin (TTM) | 1.26% | 27.77% |
| Operating Profit Margin (TTM) | 4.31% | 39.99% |
| Gross Profit Margin (TTM) | 23.28% | 45.51% |
Financial Strength
Current Ratio
AAL
0.52
Airlines, Airports & Air Services Industry
- Max
- 1.77
- Q3
- 1.68
- Median
- 0.77
- Q1
- 0.62
- Min
- 0.32
AAL’s Current Ratio of 0.52 falls into the lower quartile for the Airlines, Airports & Air Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
UNP
0.73
Railroads Industry
- Max
- 1.97
- Q3
- 1.41
- Median
- 0.85
- Q1
- 0.77
- Min
- 0.62
UNP’s Current Ratio of 0.73 falls into the lower quartile for the Railroads industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AAL
-8.12
Airlines, Airports & Air Services Industry
- Max
- 3.85
- Q3
- 2.92
- Median
- 1.02
- Q1
- 0.43
- Min
- 0.04
AAL has a Debt-to-Equity Ratio of -8.12, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.
UNP
2.11
Railroads Industry
- Max
- 2.11
- Q3
- 1.44
- Median
- 1.19
- Q1
- 0.72
- Min
- 0.39
UNP’s leverage is in the upper quartile of the Railroads industry, with a Debt-to-Equity Ratio of 2.11. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio
AAL
1.25
Airlines, Airports & Air Services Industry
- Max
- 8.60
- Q3
- 6.00
- Median
- 4.19
- Q1
- 1.03
- Min
- -1.40
AAL’s Interest Coverage Ratio of 1.25 is positioned comfortably within the norm for the Airlines, Airports & Air Services industry, indicating a standard and healthy capacity to cover its interest payments.
UNP
7.65
Railroads Industry
- Max
- 8.45
- Q3
- 7.16
- Median
- 6.40
- Q1
- 5.53
- Min
- 4.30
UNP’s Interest Coverage Ratio of 7.65 is in the upper quartile for the Railroads industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AAL | UNP |
|---|---|---|
| Current Ratio (TTM) | 0.52 | 0.73 |
| Quick Ratio (TTM) | 0.42 | 0.61 |
| Debt-to-Equity Ratio (TTM) | -8.12 | 2.11 |
| Debt-to-Asset Ratio (TTM) | 0.58 | 0.50 |
| Net Debt-to-EBITDA Ratio (TTM) | 8.51 | 2.60 |
| Interest Coverage Ratio (TTM) | 1.25 | 7.65 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AAL and UNP. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AAL
0.00%
Airlines, Airports & Air Services Industry
- Max
- 162.17%
- Q3
- 2.10%
- Median
- 0.00%
- 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
2.27%
Railroads Industry
- Max
- 4.30%
- Q3
- 2.64%
- Median
- 2.21%
- Q1
- 1.33%
- Min
- 0.43%
UNP’s Dividend Yield of 2.27% is consistent with its peers in the Railroads industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AAL
0.00%
Airlines, Airports & Air Services Industry
- Max
- 106.87%
- Q3
- 15.62%
- Median
- 0.00%
- 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
47.86%
Railroads Industry
- Max
- 69.30%
- Q3
- 47.83%
- Median
- 32.93%
- Q1
- 18.85%
- Min
- 13.29%
UNP’s Dividend Payout Ratio of 47.86% is in the upper quartile for the Railroads 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.
Dividend at a Glance
| Symbol | AAL | UNP |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.27% |
| Dividend Payout Ratio (TTM) | 0.00% | 47.86% |
Valuation
Price-to-Earnings Ratio
AAL
11.24
Airlines, Airports & Air Services Industry
- Max
- 24.07
- Q3
- 18.40
- Median
- 12.44
- Q1
- 11.24
- Min
- 7.21
AAL’s P/E Ratio of 11.24 is within the middle range for the Airlines, Airports & Air Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
UNP
21.09
Railroads Industry
- Max
- 26.01
- Q3
- 22.00
- Median
- 19.48
- Q1
- 17.09
- Min
- 16.09
UNP’s P/E Ratio of 21.09 is within the middle range for the Railroads industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
AAL
0.21
Airlines, Airports & Air Services Industry
- Max
- 1.38
- Q3
- 1.07
- Median
- 0.61
- Q1
- 0.32
- Min
- 0.03
The Forward PEG Ratio is often not a primary valuation metric in the Airlines, Airports & Air Services industry.
UNP
1.79
Railroads Industry
- Max
- 1.85
- Q3
- 1.84
- Median
- 1.79
- Q1
- 1.59
- Min
- 1.52
The Forward PEG Ratio is often not a primary valuation metric in the Railroads industry.
Price-to-Sales Ratio
AAL
0.14
Airlines, Airports & Air Services Industry
- Max
- 1.84
- Q3
- 1.69
- Median
- 0.98
- Q1
- 0.45
- Min
- 0.14
In the lower quartile for the Airlines, Airports & Air Services 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.
UNP
5.82
Railroads Industry
- Max
- 6.74
- Q3
- 5.30
- Median
- 4.55
- Q1
- 2.73
- Min
- 0.42
UNP’s P/S Ratio of 5.82 is in the upper echelon for the Railroads 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.
Price-to-Book Ratio
AAL
-1.71
Airlines, Airports & Air Services Industry
- Max
- 12.86
- Q3
- 8.15
- Median
- 2.07
- Q1
- 1.50
- Min
- 0.62
AAL has a negative P/B Ratio of -1.71, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.
UNP
8.85
Railroads Industry
- Max
- 5.11
- Q3
- 4.36
- Median
- 3.70
- Q1
- 1.98
- Min
- 1.00
At 8.85, UNP’s P/B Ratio is at an extreme premium to the Railroads 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.
Valuation at a Glance
| Symbol | AAL | UNP |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 11.24 | 21.09 |
| Forward PEG Ratio (TTM) | 0.21 | 1.79 |
| Price-to-Sales Ratio (P/S, TTM) | 0.14 | 5.82 |
| Price-to-Book Ratio (P/B, TTM) | -1.71 | 8.85 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 2.19 | 24.04 |
| EV-to-EBITDA (TTM) | 10.34 | 13.92 |
| EV-to-Sales (TTM) | 0.80 | 7.16 |