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

Updated

Here’s a clear look at AAL and UPS, 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

UPS stands out with 81.17 billion USD in market value—about 10.95× AAL’s market cap of 7.41 billion USD.

With betas of 1.32 for AAL and 1.21 for UPS, both show similar volatility profiles relative to the overall market.

SymbolAALUPS
Company NameAmerican Airlines Group Inc.United Parcel Service, Inc.
CountryUSUS
SectorIndustrialsIndustrials
IndustryAirlines, Airports & Air ServicesIntegrated Freight & Logistics
CEOMr. Robert D. Isom Jr.Ms. Carol B. Tome
Price11.24 USD95.85 USD
Market Cap7.41 billion USD81.17 billion USD
Beta1.321.21
ExchangeNASDAQNYSE
IPO DateSeptember 27, 2005November 10, 1999
ADRNoNo

Performance Comparison

This chart compares the performance of AAL and UPS 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 UPS based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • AAL has a negative P/B ratio of -1.64, indicating its liabilities exceed assets (negative equity). UPS, with a P/B of 5.20, maintains positive shareholder equity.
SymbolAALUPS
Price-to-Earnings Ratio (P/E, TTM)10.8113.91
Forward PEG Ratio (TTM)0.201.07
Price-to-Sales Ratio (P/S, TTM)0.140.89
Price-to-Book Ratio (P/B, TTM)-1.645.20
Price-to-Free Cash Flow Ratio (P/FCF, TTM)2.1115.10
EV-to-EBITDA (TTM)10.278.53
EV-to-Sales (TTM)0.801.12
EV-to-Free Cash Flow (TTM)12.2718.97

Dividend Comparison

AAL offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while UPS provides a 6.82% dividend yield, giving investors a steady income stream.

SymbolAALUPS
Dividend Yield (TTM)0.00%6.82%

Financial Strength Metrics Comparison

This section dives into the financial resilience of AAL and UPS, 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 UPS at 1.09 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 UPS at 1.09 maintains a comfortable buffer of liquid assets.
  • AAL has negative equity (debt-to-equity ratio -8.12), an unusual warning sign, while UPS at 1.63 maintains a conventional debt-to-equity balance.
SymbolAALUPS
Current Ratio (TTM)0.521.09
Quick Ratio (TTM)0.421.09
Debt-to-Equity Ratio (TTM)-8.121.63
Debt-to-Assets Ratio (TTM)0.580.37
Interest Coverage Ratio (TTM)1.259.53