Financial Analysis: American Airlines Group (NASDAQ:AAL) vs. Singapore Airlines (OTCMKTS:SINGF)

Singapore Airlines (OTCMKTS:SINGF) and American Airlines Group (NASDAQ:AAL) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.

Dividends

Singapore Airlines pays an annual dividend of $0.21 per share and has a dividend yield of 3.7%. American Airlines Group pays an annual dividend of $0.40 per share and has a dividend yield of 2.8%. Singapore Airlines pays out 122.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Airlines Group pays out -81.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and target prices for Singapore Airlines and American Airlines Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Singapore Airlines	0	0	0	0	0.00
American Airlines Group	2	10	8	1	2.38

American Airlines Group has a consensus target price of $19.03, indicating a potential upside of 31.85%. Given American Airlines Group’s stronger consensus rating and higher possible upside, analysts plainly believe American Airlines Group is more favorable than Singapore Airlines.

Valuation & Earnings

This table compares Singapore Airlines and American Airlines Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Singapore Airlines	N/A	N/A	N/A	$0.17	33.47
American Airlines Group	$58.34 billion	0.16	$111.00 million	($0.49)	-29.45

American Airlines Group has higher revenue and earnings than Singapore Airlines. American Airlines Group is trading at a lower price-to-earnings ratio than Singapore Airlines, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

6.1% of Singapore Airlines shares are held by institutional investors. Comparatively, 52.4% of American Airlines Group shares are held by institutional investors. 0.7% of American Airlines Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Singapore Airlines and American Airlines Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Singapore Airlines	N/A	N/A	N/A
American Airlines Group	-0.56%	-9.11%	-0.27%

Summary

American Airlines Group beats Singapore Airlines on 8 of the 14 factors compared between the two stocks.

About Singapore Airlines

Singapore Airlines Limited, together with subsidiaries, provides passenger and cargo air transportation services under the Singapore Airlines and Scoot brands in East Asia, the Americas, Europe, Southwest Pacific, West Asia, and Africa. It operates through The Full-Service Carrier, The Low-Cost Carrier, and Engineering Services segments. The company also offers engineering services, pilot training services, air charters, and tour wholesaling and related services; and refurbishes aircraft galleys. In addition, it provides aircraft maintenance services, including technical and non-technical handling at the airport; maintenance, repair, and overhaul of aircraft and cabin components/systems; repair and overhaul of hydromechanical equipment; aviation insurance; and airframe maintenance and overhaul services, as well as manufactures aircraft cabin parts and tooling for the aerospace industry. Further, the company offers marketing and supporting portal services for the air cargo industry, as well as travel-related retail services. Additionally, it provides travel booking and related services through an online portal. As of March 31, 2024, the company operated a fleet of 200 aircrafts, including 142 passenger aircrafts, 51 passenger aircrafts, and seven freighters. Singapore Airlines Limited was founded in 1947 and is based in Singapore.

About American Airlines Group

American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. The company provides scheduled air transportation services for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C., as well as through partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo. It operates a mainline fleet of 965 aircraft. The company was formerly known as AMR Corporation and changed its name to American Airlines Group Inc. in December 2013. American Airlines Group Inc. was founded in 1926 and is headquartered in Fort Worth, Texas.