Alaska Air Group Inc (ALK)vsSouthwest Airlines Company (LUV)
ALK
Alaska Air Group Inc
$36.78
-3.94%
INDUSTRIALS · Cap: $4.03B
LUV
Southwest Airlines Company
$43.45
-1.16%
INDUSTRIALS · Cap: $21.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Airlines Company generates 106% more annual revenue ($31.55B vs $15.30B). LUV leads profitability with a 3.3% profit margin vs -2.6%. LUV appears more attractively valued with a PEG of 0.22. LUV earns a higher WallStSmart Score of 70/100 (B).
ALK
Buy50
out of 100
Grade: C-
LUV
Strong Buy70
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+55.3%
Fair Value
$128.74
Current Price
$36.78
$91.96 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
Earnings expanding 450.0% YoY
Reasonable price relative to book value
Revenue surging 21.2% year-over-year
Areas to Watch
ROE of 2.0% — below average capital efficiency
Operating margin of 2.5%
Earnings declined 68.3%
Negative free cash flow — burning cash
Grey zone — moderate risk
3.3% margin — thin
Operating margin of 4.5%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : ALK
The strongest argument for ALK centers on Price/Book. Revenue growth of 14.4% demonstrates continued momentum. 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, EPS Growth, Price/Book. Revenue growth of 21.2% demonstrates continued momentum. PEG of 0.22 suggests the stock is reasonably priced for its growth.
Bear Case : ALK
The primary concerns for ALK are Return on Equity, Operating Margin, EPS Growth. Debt-to-equity of 2.07 is elevated, increasing financial risk.
Bear Case : LUV
The primary concerns for LUV are Altman Z-Score, Profit Margin, Operating Margin. Thin 3.3% 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 1.33 — expect wider price swings.
LUV is growing revenue faster at 21.2% — sustainability is the question.
ALK generates stronger free cash flow (-293M), providing more financial flexibility.
Bottom Line
LUV scores higher overall (70/100 vs 50/100) and 21.2% revenue growth. ALK offers better value entry with a 55.3% margin of safety. Both earn "Strong Buy" and "Buy" 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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