Alaska Air Group, Inc. (ALK) vs Delta Air Lines, Inc. (DAL)

Alaska Air Group, Inc. and Delta Air Lines, Inc. are both Airlines companies. Delta Air Lines, Inc. is the larger, with a market value of $54.8B against $4.5B — 12.2× the size. Alaska Air Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Delta Air Lines, Inc. trades at 14.0×. Delta Air Lines, Inc. grew revenue faster over the last twelve months: 10.3% against 9.79%. Delta Air Lines, Inc. has the higher net margin (5.78% vs −1.19%) and the higher return on invested capital (11.1% vs −1.94%). Both pay a dividend; Delta Air Lines, Inc. yields more (0.82% vs 0.37%). Across the 20 metrics below, Delta Air Lines, Inc. leads on 14 and Alaska Air Group, Inc. on 6.

Valuation

Metric ALK DAL Airlines median
P/E n/m 13.99 10.32
P/S 0.31 0.81 0.57
P/B 1.24 2.55 2.06
Price to free cash flow n/m 16.29 13.20
EV/EBITDA 13.73 11.75 9.68
EV/Sales 0.55 0.95 0.89
Earnings yield (3.81%) 7.15% 2.85%
Free cash flow yield (12.05%) 6.14% 3.17%

Profitability

Metric ALK DAL Airlines median
Gross margin 100.00% 32.82% 42.57%
Operating margin (1.52%) 8.08% 4.18%
Net margin (1.19%) 5.78% 1.85%
Free cash flow margin (3.71%) 4.99% 4.31%
Return on equity (4.60%) 20.12% 10.75%
Return on assets (0.85%) 4.80% 1.67%
Return on invested capital (1.94%) 11.08% 3.19%

Growth

Metric ALK DAL Airlines median
Revenue growth (TTM) 9.79% 10.27% 9.79%
EPS growth (last fiscal year) (73.05%) 43.71% —
Revenue growth, 5-year CAGR 31.90% 29.96% 25.83%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ALK DAL Airlines median
Debt to equity 1.70 0.64 0.81
Current ratio 0.55 0.42 0.60
Net debt to EBITDA 3.10 1.19 1.42

Dividend

Metric ALK DAL Airlines median
Dividend yield 0.37% 0.82% 0.82%
Payout ratio 0.00 0.02 0.00

Size

Metric ALK DAL Airlines median
Market cap 4.50b 54.81b 3.91b

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