Alaska Air Group, Inc. (ALK) vs United Airlines Holdings Inc (UAL)

Alaska Air Group, Inc. and United Airlines Holdings Inc are both Airlines companies. United Airlines Holdings Inc is the larger, with a market value of $35.9B against $4.3B — 8.3× the size. Alaska Air Group, Inc. has negative trailing earnings, so its P/E is not meaningful; United Airlines Holdings Inc trades at 10.1×. United Airlines Holdings Inc grew revenue faster over the last twelve months: 12.3% against 8.23%. United Airlines Holdings Inc has the higher net margin (5.46% vs −2.58%) and the higher return on invested capital (10.4% vs −2.44%). Across the 19 metrics below, United Airlines Holdings Inc leads on 14 and Alaska Air Group, Inc. on 5.

Valuation

Metric ALK UAL Airlines median
P/E n/m 10.14 9.74
P/S 0.28 0.55 0.62
P/B 1.23 2.03 2.03
Price to free cash flow n/m 29.87 18.01
EV/EBITDA 13.96 9.70 8.55
EV/Sales 0.54 0.73 0.92
Earnings yield (9.06%) 9.87% 3.19%
Free cash flow yield (15.03%) 3.35% 3.20%

Profitability

Metric ALK UAL Airlines median
Gross margin 100.00% 66.07% 51.70%
Operating margin (1.89%) 7.51% 6.13%
Net margin (2.58%) 5.46% 1.73%
Free cash flow margin (4.25%) 1.84% 3.29%
Return on equity (10.45%) 22.31% 14.11%
Return on assets (1.92%) 4.43% 1.28%
Return on invested capital (2.44%) 10.43% 4.91%

Growth

Metric ALK UAL Airlines median
Revenue growth (TTM) 8.23% 12.30% 12.32%
EPS growth (last fiscal year) (73.05%) 7.94% 9.88%
Revenue growth, 5-year CAGR 31.90% 30.93% 25.83%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ALK UAL Airlines median
Debt to equity 1.74 1.49 0.76
Current ratio 0.46 0.75 0.62
Net debt to EBITDA 3.10 1.65 1.42

Dividend

Metric ALK UAL Airlines median
Dividend yield — — 1.28%
Payout ratio — — 0.20

Size

Metric ALK UAL Airlines median
Market cap 4.32b 35.90b 2.23b

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