Alaska Air Group Inc (ALK)vsSouthwest Airlines Company (LUV)
ALK
Alaska Air Group Inc
$40.54
+1.32%
INDUSTRIALS · Cap: $4.55B
LUV
Southwest Airlines Company
$40.98
+1.59%
INDUSTRIALS · Cap: $18.92B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Airlines Company generates 104% more annual revenue ($30.07B vs $14.76B). LUV leads profitability with a 2.8% profit margin vs -1.2%. LUV appears more attractively valued with a PEG of 0.19. LUV earns a higher WallStSmart Score of 66/100 (B-).
ALK
Hold47
out of 100
Grade: D+
LUV
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+54.2%
Fair Value
$125.47
Current Price
$40.54
$84.93 discount
Intrinsic value data unavailable for LUV.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Reasonable price relative to book value
16.4% revenue growth
Earnings expanding 20.5% YoY
Areas to Watch
ROE of 2.0% — below average capital efficiency
Earnings declined 68.3%
Negative free cash flow — burning cash
Distress zone — elevated risk
Grey zone — moderate risk
2.8% margin — thin
Operating margin of 3.4%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : ALK
The strongest argument for ALK centers on Price/Book. PEG of 1.20 suggests the stock is reasonably priced for its growth.
Bull Case : LUV
The strongest argument for LUV centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 16.4% demonstrates continued momentum. PEG of 0.19 suggests the stock is reasonably priced for its growth.
Bear Case : ALK
The primary concerns for ALK are Return on Equity, EPS Growth, Free Cash Flow. Debt-to-equity of 2.08 is elevated, increasing financial risk.
Bear Case : LUV
The primary concerns for LUV are Altman Z-Score, Profit Margin, Operating Margin. Thin 2.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
ALK profiles as a turnaround stock while LUV is a growth play — different risk/reward profiles.
ALK carries more volatility with a beta of 1.28 — expect wider price swings.
LUV is growing revenue faster at 16.4% — sustainability is the question.
Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LUV scores higher overall (66/100 vs 47/100) and 16.4% revenue growth. ALK offers better value entry with a 54.2% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Alaska Air Group Inc
INDUSTRIALS · AIRLINES · USA
Alaska Air Group is an airline holding company based in SeaTac, Washington, United States.
Southwest Airlines Company
INDUSTRIALS · AIRLINES · USA
Southwest Airlines Co., typically referred to as Southwest, is one of the major airlines of the United States and the world's largest low-cost carrier airline. It is headquartered in Dallas, Texas.
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