American Airlines Group Inc. (AAL) vs LATAM Airlines Group S.A. (LTM)

American Airlines Group Inc. and LATAM Airlines Group S.A. are both Airlines companies. LATAM Airlines Group S.A. is the larger, with a market value of $14.8B against $9.0B — 1.7× the size. American Airlines Group Inc. has negative trailing earnings, so its P/E is not meaningful; LATAM Airlines Group S.A. trades at 9.6×. LATAM Airlines Group S.A. grew revenue faster over the last twelve months: 20.5% against 7.53%. LATAM Airlines Group S.A. has the higher net margin (9.85% vs −0.56%) and the lower return on invested capital (0.00% vs 3.82%). Across the 19 metrics below, LATAM Airlines Group S.A. leads on 15 and American Airlines Group Inc. on 4.

Valuation

Metric AAL LTM Airlines median
P/E n/m 9.63 10.32
P/S 0.16 0.95 0.57
P/B n/m 7.58 2.06
Price to free cash flow 32.23 6.90 13.20
EV/EBITDA 29.43 8.31 9.68
EV/Sales 0.51 1.24 0.89
Earnings yield (3.53%) 10.38% 2.85%
Free cash flow yield 3.10% 14.49% 3.17%

Profitability

Metric AAL LTM Airlines median
Gross margin 21.11% 26.98% 42.57%
Operating margin 1.73% 14.96% 4.18%
Net margin (0.56%) 9.85% 1.85%
Free cash flow margin 0.49% 13.73% 4.31%
Return on equity 8.31% 108.24% 10.75%
Return on assets (0.51%) 8.63% 1.67%
Return on invested capital 3.82% 0.00% 3.19%

Growth

Metric AAL LTM Airlines median
Revenue growth (TTM) 7.53% 20.52% 9.79%
EPS growth (last fiscal year) (86.29%) 53.25% —
Revenue growth, 5-year CAGR 25.80% 29.45% 25.83%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AAL LTM Airlines median
Debt to equity (7.28) 0.00 0.81
Current ratio 0.53 0.67 0.60
Net debt to EBITDA 6.09 (0.92) 1.42

Dividend

Metric AAL LTM Airlines median
Dividend yield — — 0.82%
Payout ratio 0.00 — 0.00

Size

Metric AAL LTM Airlines median
Market cap 8.95b 14.83b 3.91b

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