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Choose between American Airlines stocks or peers – both may offer similar returns

we believe that american airlines stock (NASDAQ: AAL) and its peers delta airlines stocks (NYSE: DAL) could offer similar returns over the next three years. American Airlines trades at 0.2x tracking revenue compared to 0.4x for Delta Air Lines. As explained below, investors are allocating higher multiples to Delta due to Delta’s superior earnings growth. Looking at stock returns, Delta has returned -16% over the past 12 months, slightly better than American Airlines, down 19%, and both underperforming the broader S&P 500 Index, down 13%. increase. There’s a lot more to compare, and the sections below discuss possible returns for AAL and DAL. Compare historical revenue growth, returns, valuations and many other factors with interactive dashboard analytics. American Airlines vs. Delta Air Lines: Which stock is the better bet? Some of the analysis is summarized below.

1. Delta Air Lines Earnings Growth Improves

  • Both companies have seen significant sales growth in the last 12 months. Still, Delta’s 69% revenue growth is slightly ahead of American’s 64%.
  • Over the longer timeframe, Delta Air Lines performed well, with revenue falling from $47 billion in 2019 to $17 billion in 2020 before recovering to $51 billion in 2022. It surged to $46 billion in 2019 and $49 billion in 2022.
  • Both airlines’ revenue growth in recent years can be attributed to a rebound in air travel demand, with significant increases in passenger numbers and ticket revenues in recent years.
  • In overview, American Airlines’ Revenue Passenger Miles (RPM) surged 2.3x between 2020 and 2022, while Passenger Revenue Per Available Seat Mile (PRASM) increased 69%. In contrast, Delta’s RPM increased by 2.7 times his, and PRASM increased by 80% over the same period.
  • Demand for air travel is expected to remain strong for the foreseeable future, boding well for both American and Delta.
  • our American Airlines Earnings Comparison and Delta Air Lines Earnings Comparison Dashboards provide more insight into company sales.
  • Over the next three years, Delta’s revenue is expected to grow faster than American’s.

2. American Airlines is more profitable

  • American’s operating margin of 7% over the last 12 months is better than Delta’s 4%. However, the latter’s operating margins were better than pre-pandemic.
  • American Airlines’ operating margin fell from 9.1% in 2019 before the pandemic to -53% in 2020 before recovering to 7.3% in 2022. By comparison, Delta’s operating margin was 13.2% in 2019 and -91% in 2020. , 4.0% in 2022.
  • Delta’s 12.6% free cash flow margin is also higher than American’s 4.4%.
  • our American Airlines Operating Profit Comparison and Delta Air Lines Operating Profit Comparison The dashboard has details.
  • Both are comparable when it comes to financial risk. American Airlines’ 393% debt as a share of equity is much higher than Delta’s 117%, and 14% cash as a share of assets is higher than the latter’s 9%, giving Delta a better debt position. means that there is Airlines have more cash cushions.

3. All nets

  • We can see that American Airlines is more profitable, has more cash cushion, and trades at a relatively low valuation multiple. Delta, on the other hand, has had good revenue growth and a good liability position.
  • Given the high volatility in P/E and P/EBIT, looking at the outlook using P/S as a basis, both American and Delta are likely to deliver similar returns over the next three years. It is possible.
  • The table below summarizes the earnings and earnings forecasts for both companies over the next three years and shows expected earnings. 18% American Airlines during this period 13% Expected return for Delta stock, based on Trefis machine learning analysis, means investors can choose between two airlines for similar returns – American Airlines vs. Delta Air Lines –We also provide details on how to arrive at these numbers.


AAL and DAL may offer similar returns over the next three years, American Airlines companion Price for metrics that matter. For other valuable comparisons of companies in various industries, please visit: peer comparison.

Additionally, the Covid-19 crisis has created a number of price discontinuities that could offer attractive trading opportunities. For example, you might be surprised at how counterintuitive stock valuations can be. FedEx vs. Amkor.

What if you’re looking for a more balanced portfolio instead? high quality portfolio and Multi-strategy portfolio It has consistently outperformed the market since the end of 2016.

Return value March 2023
MTD [1]
2023
YTD [1]
2017-23
total [2]
AAL return -13% Ten% -70%
DAL return -16% -2% -35%
S&P 500 Returns 0% Four% 78%
Trefis Multi-Strategy Portfolio -3% Four% 228%

[1] Month-to-date and Year-to-date as of March 28, 2023
[2] Cumulative total return since the end of 2016

Invest Trefis Portfolio that outperforms the market
view all Trefis price quote

The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.

Summarize this content to 100 words

we believe that american airlines stock (NASDAQ: AAL) and its peers delta airlines stocks (NYSE: DAL) could offer similar returns over the next three years. American Airlines trades at 0.2x tracking revenue compared to 0.4x for Delta Air Lines. As explained below, investors are allocating higher multiples to Delta due to Delta’s superior earnings growth. Looking at stock returns, Delta has returned -16% over the past 12 months, slightly better than American Airlines, down 19%, and both underperforming the broader S&P 500 Index, down 13%. increase. There’s a lot more to compare, and the sections below discuss possible returns for AAL and DAL. Compare historical revenue growth, returns, valuations and many other factors with interactive dashboard analytics. American Airlines vs. Delta Air Lines: Which stock is the better bet? Some of the analysis is summarized below.
1. Delta Air Lines Earnings Growth Improves
Both companies have seen significant sales growth in the last 12 months. Still, Delta’s 69% revenue growth is slightly ahead of American’s 64%.
Over the longer timeframe, Delta Air Lines performed well, with revenue falling from $47 billion in 2019 to $17 billion in 2020 before recovering to $51 billion in 2022. It surged to $46 billion in 2019 and $49 billion in 2022.
Both airlines’ revenue growth in recent years can be attributed to a rebound in air travel demand, with significant increases in passenger numbers and ticket revenues in recent years.
In overview, American Airlines’ Revenue Passenger Miles (RPM) surged 2.3x between 2020 and 2022, while Passenger Revenue Per Available Seat Mile (PRASM) increased 69%. In contrast, Delta’s RPM increased by 2.7 times his, and PRASM increased by 80% over the same period.
Demand for air travel is expected to remain strong for the foreseeable future, boding well for both American and Delta.
our American Airlines Earnings Comparison and Delta Air Lines Earnings Comparison Dashboards provide more insight into company sales.
Over the next three years, Delta’s revenue is expected to grow faster than American’s.
2. American Airlines is more profitable
American’s operating margin of 7% over the last 12 months is better than Delta’s 4%. However, the latter’s operating margins were better than pre-pandemic.
American Airlines’ operating margin fell from 9.1% in 2019 before the pandemic to -53% in 2020 before recovering to 7.3% in 2022. By comparison, Delta’s operating margin was 13.2% in 2019 and -91% in 2020. , 4.0% in 2022.
Delta’s 12.6% free cash flow margin is also higher than American’s 4.4%.
our American Airlines Operating Profit Comparison and Delta Air Lines Operating Profit Comparison The dashboard has details.
Both are comparable when it comes to financial risk. American Airlines’ 393% debt as a share of equity is much higher than Delta’s 117%, and 14% cash as a share of assets is higher than the latter’s 9%, giving Delta a better debt position. means that there is Airlines have more cash cushions.
3. All nets
We can see that American Airlines is more profitable, has more cash cushion, and trades at a relatively low valuation multiple. Delta, on the other hand, has had good revenue growth and a good liability position.
Given the high volatility in P/E and P/EBIT, looking at the outlook using P/S as a basis, both American and Delta are likely to deliver similar returns over the next three years. It is possible.
The table below summarizes the earnings and earnings forecasts for both companies over the next three years and shows expected earnings. 18% American Airlines during this period 13% Expected return for Delta stock, based on Trefis machine learning analysis, means investors can choose between two airlines for similar returns – American Airlines vs. Delta Air Lines –We also provide details on how to arrive at these numbers.

AAL and DAL may offer similar returns over the next three years, American Airlines companion Price for metrics that matter. For other valuable comparisons of companies in various industries, please visit: peer comparison.
Additionally, the Covid-19 crisis has created a number of price discontinuities that could offer attractive trading opportunities. For example, you might be surprised at how counterintuitive stock valuations can be. FedEx vs. Amkor.

What if you’re looking for a more balanced portfolio instead? high quality portfolio and Multi-strategy portfolio It has consistently outperformed the market since the end of 2016.
Return value
March 2023MTD [1]
2023YTD [1]
2017-23total [2]
AAL return
-13%
Ten%
-70%
DAL return
-16%
-2%
-35%
S&P 500 Returns
0%
Four%
78%
Trefis Multi-Strategy Portfolio
-3%
Four%
228%

[1] Month-to-date and Year-to-date as of March 28, 2023[2] Cumulative total return since the end of 2016
Invest Trefis Portfolio that outperforms the marketview all Trefis price quote

The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.

https://www.nasdaq.com/articles/pick-either-american-airlines-stock-or-its-peer-both-may-offer-similar-returns Choose between American Airlines stocks or peers – both may offer similar returns

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