American Airlines Group (OTCMKTS:AAMRQ) & United Airlines (NASDAQ:UAL) Critical Review

American Airlines Group (OTCMKTS:AAMRQGet Free Report) and United Airlines (NASDAQ:UALGet Free Report) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Insider & Institutional Ownership

69.7% of United Airlines shares are owned by institutional investors. 0.9% of United Airlines shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for American Airlines Group and United Airlines, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Airlines Group 0 0 0 0 0.00
United Airlines 0 2 16 0 2.89

United Airlines has a consensus target price of $157.74, suggesting a potential upside of 33.51%. Given United Airlines’ stronger consensus rating and higher possible upside, analysts clearly believe United Airlines is more favorable than American Airlines Group.

Earnings & Valuation

This table compares American Airlines Group and United Airlines”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Airlines Group N/A N/A N/A N/A N/A
United Airlines $59.07 billion 0.65 $3.35 billion $10.69 11.05

United Airlines has higher revenue and earnings than American Airlines Group.

Profitability

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

Net Margins Return on Equity Return on Assets
American Airlines Group N/A N/A N/A
United Airlines 5.56% 19.05% 3.72%

Summary

United Airlines beats American Airlines Group on 9 of the 9 factors compared between the two stocks.

About American Airlines Group

(Get Free Report)

American Airlines Group Inc., formerly AMR Corporation, operates in the airline industry. The Company’s principal subsidiary is American Airlines, Inc. (American). As of December 31, 2011, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. AMR Eagle Holding Corporation (AMR Eagle), a wholly owned subsidiary of the Company, owns two regional airlines, which do business as American Eagle-American Eagle Airlines, Inc. and Executive Airlines, Inc. (collectively, the American Eagle carriers). American also contracts with an independently owned regional airline, which does business as AmericanConnection (the AmericanConnection carrier). As of December 31, 2011, AMR Eagle operated approximately 1,500 daily departures, offering scheduled passenger service to over 175 destinations in North America, Mexico and the Caribbean.

About United Airlines

(Get Free Report)

United Airlines Holdings, Inc., through its subsidiaries, provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. The company transports people and cargo through its mainline and regional fleets. It also offers catering, ground handling, flight academy, and maintenance services for third parties. The company was formerly known as United Continental Holdings, Inc. and changed its name to United Airlines Holdings, Inc. in June 2019. United Airlines Holdings, Inc. was incorporated in 1968 and is headquartered in Chicago, Illinois.

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