AAL vs ALGT

For growth investors, Allegiant Travel Company (ALGT) is the stronger pick with 3.

7% revenue growth year-over-year, versus 0. 8% for American Airlines Group Inc. (AAL). American Airlines Group Inc. (AAL) offers the better valuation at 77. 5x trailing P/E, making it the more compelling value choice. Analysts rate American Airlines Group Inc. (AAL) a "Buy" — based on 37 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, American Airlines Group Inc.

(AAL) delivered a total return of -40. 1%, compared to -62. 4% for Allegiant Travel Company (ALGT). Over 10 years, the gap is even starker: ALGT returned -37. 1% versus AAL's -55. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), American Airlines Group Inc.

(AAL) is the lower-risk stock at 1. 96β versus Allegiant Travel Company's 2. 47β — meaning ALGT is approximately 26% more volatile than AAL relative to the S&P 500.

By revenue growth (latest reported year), Allegiant Travel Company (ALGT) is pulling ahead at 3.

7% versus 0. 8% for American Airlines Group Inc. (AAL). On earnings-per-share growth, the picture is similar: Allegiant Travel Company grew EPS 81. 6% year-over-year, compared to -86. 3% for American Airlines Group Inc.. Over a 3-year CAGR, ALGT leads at 4. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

American Airlines Group Inc.

(AAL) is the more profitable company, earning 0. 2% net margin versus -1. 7% for Allegiant Travel Company — meaning it keeps 0. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ALGT leads at 6. 7% versus 2. 7% for AAL. At the gross margin level — before operating expenses — AAL leads at 19. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

Analyst consensus price targets imply the most upside for ALGT: 32.

8% to $109. 13.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, American Airlines Group Inc.

(AAL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Allegiant Travel Company (ALGT) carries a higher beta of 2. 47 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (AAL: -55. 4%, ALGT: -37. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.