AVAV vs. UAL: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVAV and UAL, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
UAL’s market capitalization of 26.90 billion USD is significantly greater than AVAV’s 11.24 billion USD, highlighting its more substantial market valuation.
UAL carries a higher beta at 1.44, indicating it’s more sensitive to market moves, while AVAV (beta: 0.81) exhibits greater stability.
| Symbol | AVAV | UAL |
|---|---|---|
| Company Name | AeroVironment, Inc. | United Airlines Holdings, Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Aerospace & Defense | Airlines, Airports & Air Services |
| CEO | Wahid Nawabi | J. Scott Kirby |
| Price | 246.23 USD | 82.36 USD |
| Market Cap | 11.24 billion USD | 26.90 billion USD |
| Beta | 0.81 | 1.44 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | January 23, 2007 | February 6, 2006 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AVAV and UAL 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
AVAV
5.06%
Aerospace & Defense Industry
- Max
- 42.57%
- Q3
- 16.67%
- Median
- 8.39%
- Q1
- -0.77%
- Min
- -23.36%
AVAV’s Return on Equity of 5.06% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.
UAL
30.97%
Airlines, Airports & Air Services Industry
- Max
- 42.21%
- Q3
- 26.98%
- Median
- 13.01%
- Q1
- 0.37%
- Min
- -17.14%
In the upper quartile for the Airlines, Airports & Air Services industry, UAL’s Return on Equity of 30.97% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
AVAV
4.16%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.86%
- Median
- 5.47%
- Q1
- -5.60%
- Min
- -22.46%
AVAV’s Return on Invested Capital of 4.16% is in line with the norm for the Aerospace & Defense industry, reflecting a standard level of efficiency in generating profits from its capital base.
UAL
8.47%
Airlines, Airports & Air Services Industry
- Max
- 17.34%
- Q3
- 13.78%
- Median
- 4.53%
- Q1
- 1.05%
- Min
- -13.54%
UAL’s Return on Invested Capital of 8.47% 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.
Net Profit Margin
AVAV
5.54%
Aerospace & Defense Industry
- Max
- 22.67%
- Q3
- 8.04%
- Median
- 4.95%
- Q1
- -5.07%
- Min
- -16.58%
AVAV’s Net Profit Margin of 5.54% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.
UAL
6.34%
Airlines, Airports & Air Services Industry
- Max
- 24.88%
- Q3
- 9.50%
- Median
- 3.91%
- Q1
- -1.02%
- Min
- -10.56%
UAL’s Net Profit Margin of 6.34% 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.
Operating Profit Margin
AVAV
5.18%
Aerospace & Defense Industry
- Max
- 22.01%
- Q3
- 11.49%
- Median
- 8.96%
- Q1
- 3.77%
- Min
- -4.96%
AVAV’s Operating Profit Margin of 5.18% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.
UAL
9.70%
Airlines, Airports & Air Services Industry
- Max
- 22.38%
- Q3
- 14.22%
- Median
- 9.66%
- Q1
- -0.09%
- Min
- -12.58%
UAL’s Operating Profit Margin of 9.70% 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.
Profitability at a Glance
| Symbol | AVAV | UAL |
|---|---|---|
| Return on Equity (TTM) | 5.06% | 30.97% |
| Return on Assets (TTM) | 3.89% | 4.81% |
| Return on Invested Capital (TTM) | 4.16% | 8.47% |
| Net Profit Margin (TTM) | 5.54% | 6.34% |
| Operating Profit Margin (TTM) | 5.18% | 9.70% |
| Gross Profit Margin (TTM) | 40.23% | 38.15% |
Financial Strength
Current Ratio
AVAV
3.52
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.36
- Median
- 2.16
- Q1
- 1.20
- Min
- 0.41
AVAV’s Current Ratio of 3.52 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.
UAL
0.78
Airlines, Airports & Air Services Industry
- Max
- 1.77
- Q3
- 1.68
- Median
- 0.77
- Q1
- 0.62
- Min
- 0.32
UAL’s Current Ratio of 0.78 aligns with the median group of the Airlines, Airports & Air Services industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
AVAV
0.04
Aerospace & Defense Industry
- Max
- 1.20
- Q3
- 0.73
- Median
- 0.51
- Q1
- 0.09
- Min
- 0.00
Falling into the lower quartile for the Aerospace & Defense industry, AVAV’s Debt-to-Equity Ratio of 0.04 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
UAL
2.61
Airlines, Airports & Air Services Industry
- Max
- 3.85
- Q3
- 2.92
- Median
- 1.02
- Q1
- 0.43
- Min
- 0.04
UAL’s Debt-to-Equity Ratio of 2.61 is typical for the Airlines, Airports & Air Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
AVAV
245.75
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.38
- Median
- 2.95
- Q1
- 1.68
- Min
- -6.68
With an Interest Coverage Ratio of 245.75, AVAV demonstrates a superior capacity to service its debt, placing it well above the typical range for the Aerospace & Defense industry. This stems from either robust earnings or a conservative debt load.
UAL
4.25
Airlines, Airports & Air Services Industry
- Max
- 8.60
- Q3
- 6.00
- Median
- 4.19
- Q1
- 1.03
- Min
- -1.40
UAL’s Interest Coverage Ratio of 4.25 is positioned comfortably within the norm for the Airlines, Airports & Air Services industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AVAV | UAL |
|---|---|---|
| Current Ratio (TTM) | 3.52 | 0.78 |
| Quick Ratio (TTM) | 2.69 | 0.72 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 2.61 |
| Debt-to-Asset Ratio (TTM) | 0.03 | 0.43 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.11 | 3.08 |
| Interest Coverage Ratio (TTM) | 245.75 | 4.25 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVAV and UAL. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AVAV
0.00%
Aerospace & Defense Industry
- Max
- 6.00%
- Q3
- 0.66%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AVAV 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.
UAL
0.00%
Airlines, Airports & Air Services Industry
- Max
- 162.17%
- Q3
- 2.10%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
UAL 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.
Dividend Payout Ratio
AVAV
0.00%
Aerospace & Defense Industry
- Max
- 172.02%
- Q3
- 32.47%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AVAV 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.
UAL
0.00%
Airlines, Airports & Air Services Industry
- Max
- 106.87%
- Q3
- 15.62%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
UAL 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.
Dividend at a Glance
| Symbol | AVAV | UAL |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio
AVAV
158.45
Aerospace & Defense Industry
- Max
- 75.34
- Q3
- 54.40
- Median
- 38.63
- Q1
- 26.10
- Min
- 16.44
At 158.45, AVAV’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Aerospace & Defense industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
UAL
7.50
Airlines, Airports & Air Services Industry
- Max
- 24.07
- Q3
- 18.40
- Median
- 12.44
- Q1
- 11.24
- Min
- 7.21
In the lower quartile for the Airlines, Airports & Air Services industry, UAL’s P/E Ratio of 7.50 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Forward P/E to Growth Ratio
AVAV
4.65
Aerospace & Defense Industry
- Max
- 10.68
- Q3
- 5.36
- Median
- 2.31
- Q1
- 1.47
- Min
- 0.01
AVAV’s Forward PEG Ratio of 4.65 is within the middle range of its peers in the Aerospace & Defense industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
UAL
0.50
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.
Price-to-Sales Ratio
AVAV
14.27
Aerospace & Defense Industry
- Max
- 19.34
- Q3
- 9.54
- Median
- 2.71
- Q1
- 1.59
- Min
- 0.35
AVAV’s P/S Ratio of 14.27 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.
UAL
0.47
Airlines, Airports & Air Services Industry
- Max
- 1.84
- Q3
- 1.69
- Median
- 0.98
- Q1
- 0.45
- Min
- 0.14
UAL’s P/S Ratio of 0.47 aligns with the market consensus for the Airlines, Airports & Air Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
AVAV
7.80
Aerospace & Defense Industry
- Max
- 16.08
- Q3
- 8.12
- Median
- 4.12
- Q1
- 2.69
- Min
- 0.69
AVAV’s P/B Ratio of 7.80 is within the conventional range for the Aerospace & Defense industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
UAL
2.17
Airlines, Airports & Air Services Industry
- Max
- 12.86
- Q3
- 8.15
- Median
- 2.07
- Q1
- 1.50
- Min
- 0.62
UAL’s P/B Ratio of 2.17 is within the conventional range for the Airlines, Airports & Air Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | AVAV | UAL |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 158.45 | 7.50 |
| Forward PEG Ratio (TTM) | 4.65 | 0.50 |
| Price-to-Sales Ratio (P/S, TTM) | 14.27 | 0.47 |
| Price-to-Book Ratio (P/B, TTM) | 7.80 | 2.17 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -821.15 | 5.57 |
| EV-to-EBITDA (TTM) | 188.22 | 6.60 |
| EV-to-Sales (TTM) | 14.26 | 0.87 |