AAL vs. WM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AAL and WM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
WM’s market capitalization of 91.39 billion USD is significantly greater than AAL’s 7.71 billion USD, highlighting its more substantial market valuation.
AAL’s beta of 1.38 points to significantly higher volatility compared to WM (beta: 0.67), suggesting AAL has greater potential for both gains and losses relative to market movements.
| Symbol | AAL | WM |
|---|---|---|
| Company Name | American Airlines Group Inc. | Waste Management, Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Airlines, Airports & Air Services | Waste Management |
| CEO | Robert D. Isom Jr. | James C. Fish Jr. |
| Price | 11.69 USD | 227.1 USD |
| Market Cap | 7.71 billion USD | 91.39 billion USD |
| Beta | 1.38 | 0.67 |
| Exchange | NASDAQ | NYSE |
| IPO Date | September 27, 2005 | June 22, 1988 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AAL and WM 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.
WM
33.09%
Waste Management Industry
- Max
- 40.07%
- Q3
- 22.07%
- Median
- 11.65%
- Q1
- -3.10%
- Min
- -27.58%
In the upper quartile for the Waste Management industry, WM’s Return on Equity of 33.09% 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.
WM
8.14%
Waste Management Industry
- Max
- 9.07%
- Q3
- 7.95%
- Median
- 3.52%
- Q1
- 1.30%
- Min
- -4.75%
In the upper quartile for the Waste Management industry, WM’s Return on Invested Capital of 8.14% 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.
WM
11.67%
Waste Management Industry
- Max
- 12.88%
- Q3
- 11.97%
- Median
- 6.76%
- Q1
- -0.76%
- Min
- -9.89%
WM’s Net Profit Margin of 11.67% is aligned with the median group of its peers in the Waste Management industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
WM
17.97%
Waste Management Industry
- Max
- 20.22%
- Q3
- 13.63%
- Median
- 7.87%
- Q1
- 1.29%
- Min
- -5.01%
An Operating Profit Margin of 17.97% places WM in the upper quartile for the Waste Management 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 | WM |
|---|---|---|
| Return on Equity (TTM) | -15.15% | 33.09% |
| Return on Assets (TTM) | 1.09% | 6.01% |
| Return on Invested Capital (TTM) | 4.12% | 8.14% |
| Net Profit Margin (TTM) | 1.26% | 11.67% |
| Operating Profit Margin (TTM) | 4.31% | 17.97% |
| Gross Profit Margin (TTM) | 23.28% | 37.03% |
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.
WM
0.83
Waste Management Industry
- Max
- 2.37
- Q3
- 1.98
- Median
- 1.06
- Q1
- 0.79
- Min
- 0.66
WM’s Current Ratio of 0.83 aligns with the median group of the Waste Management industry, indicating that its short-term liquidity is in line with its sector peers.
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.
WM
2.76
Waste Management Industry
- Max
- 2.64
- Q3
- 1.57
- Median
- 1.12
- Q1
- 0.87
- Min
- 0.07
With a Debt-to-Equity Ratio of 2.76, WM operates with exceptionally high leverage compared to the Waste Management industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
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.
WM
5.88
Waste Management Industry
- Max
- 6.06
- Q3
- 5.49
- Median
- 2.34
- Q1
- 0.26
- Min
- -2.04
WM’s Interest Coverage Ratio of 5.88 is in the upper quartile for the Waste Management industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AAL | WM |
|---|---|---|
| Current Ratio (TTM) | 0.52 | 0.83 |
| Quick Ratio (TTM) | 0.42 | 0.79 |
| Debt-to-Equity Ratio (TTM) | -8.12 | 2.76 |
| Debt-to-Asset Ratio (TTM) | 0.58 | 0.54 |
| Net Debt-to-EBITDA Ratio (TTM) | 8.51 | 3.58 |
| Interest Coverage Ratio (TTM) | 1.25 | 5.88 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AAL and WM. 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.
WM
1.39%
Waste Management Industry
- Max
- 1.38%
- Q3
- 0.73%
- Median
- 0.06%
- Q1
- 0.00%
- Min
- 0.00%
WM’s Dividend Yield of 1.39% is exceptionally high, placing it well above the typical range for the Waste Management 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.
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.
WM
46.32%
Waste Management Industry
- Max
- 49.31%
- Q3
- 43.13%
- Median
- 17.31%
- Q1
- 0.26%
- Min
- 0.00%
WM’s Dividend Payout Ratio of 46.32% is in the upper quartile for the Waste Management 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 | WM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.39% |
| Dividend Payout Ratio (TTM) | 0.00% | 46.32% |
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.
WM
34.15
Waste Management Industry
- Max
- 76.31
- Q3
- 66.40
- Median
- 35.51
- Q1
- 32.40
- Min
- 9.07
WM’s P/E Ratio of 34.15 is within the middle range for the Waste Management 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.
WM
4.12
Waste Management Industry
- Max
- 6.52
- Q3
- 4.74
- Median
- 2.97
- Q1
- 0.85
- Min
- 0.06
WM’s Forward PEG Ratio of 4.12 is within the middle range of its peers in the Waste Management industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
WM
3.99
Waste Management Industry
- Max
- 5.29
- Q3
- 4.49
- Median
- 3.59
- Q1
- 1.82
- Min
- 0.31
WM’s P/S Ratio of 3.99 aligns with the market consensus for the Waste Management industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
WM
10.56
Waste Management Industry
- Max
- 10.62
- Q3
- 6.13
- Median
- 4.78
- Q1
- 2.85
- Min
- 1.68
WM’s P/B Ratio of 10.56 is in the upper tier for the Waste Management 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.
Valuation at a Glance
| Symbol | AAL | WM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 11.24 | 34.15 |
| Forward PEG Ratio (TTM) | 0.21 | 4.12 |
| Price-to-Sales Ratio (P/S, TTM) | 0.14 | 3.99 |
| Price-to-Book Ratio (P/B, TTM) | -1.71 | 10.56 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 2.19 | 49.75 |
| EV-to-EBITDA (TTM) | 10.34 | 17.44 |
| EV-to-Sales (TTM) | 0.80 | 5.02 |