WallStSmart

CNH Industrial N.V. (CNH)vsSouthwest Airlines Company (LUV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southwest Airlines Company generates 60% more annual revenue ($28.88B vs $18.09B). LUV leads profitability with a 2.8% profit margin vs 2.1%. LUV appears more attractively valued with a PEG of 0.29. LUV earns a higher WallStSmart Score of 66/100 (B-).

CNH

Buy

51

out of 100

Grade: C-

Growth: 2.0Profit: 4.0Value: 5.7Quality: 5.5
Piotroski: 3/9Altman Z: 1.89

LUV

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 4.5Value: 7.0Quality: 5.5
Piotroski: 6/9Altman Z: 1.84

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNH2 strengths · Avg: 8.0/10
PEG RatioValuation
0.588/10

Growing faster than its price suggests

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

LUV2 strengths · Avg: 10.0/10
PEG RatioValuation
0.2910/10

Growing faster than its price suggests

EPS GrowthGrowth
50.8%10/10

Earnings expanding 50.8% YoY

Areas to Watch

CNH4 concerns · Avg: 3.5/10
P/E RatioValuation
31.6x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.894/10

Grey zone — moderate risk

Return on EquityProfitability
5.0%3/10

ROE of 5.0% — below average capital efficiency

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

LUV4 concerns · Avg: 3.5/10
P/E RatioValuation
28.6x4/10

Moderate valuation

Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : CNH

The strongest argument for CNH centers on PEG Ratio, Price/Book. PEG of 0.58 suggests the stock is reasonably priced for its growth.

Bull Case : LUV

The strongest argument for LUV centers on PEG Ratio, EPS Growth. Revenue growth of 12.8% demonstrates continued momentum. PEG of 0.29 suggests the stock is reasonably priced for its growth.

Bear Case : CNH

The primary concerns for CNH are P/E Ratio, Altman Z-Score, Return on Equity. Debt-to-equity of 3.37 is elevated, increasing financial risk. Thin 2.1% margins leave little buffer for downturns.

Bear Case : LUV

The primary concerns for LUV are P/E Ratio, Altman Z-Score, Profit Margin. Thin 2.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

CNH carries more volatility with a beta of 1.25 — expect wider price swings.

LUV is growing revenue faster at 12.8% — sustainability is the question.

LUV generates stronger free cash flow (788M), providing more financial flexibility.

Monitor FARM & HEAVY CONSTRUCTION MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LUV scores higher overall (66/100 vs 51/100) and 12.8% revenue growth. 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.

CNH Industrial N.V.

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

CNH Industrial N.V., an equipment and services company, engages in the design, production, marketing, sale, and financing of agricultural and construction equipment in North America, Europe, the Middle East, Africa, South America, and the Asia Pacific. The company is headquartered in Basildon, the United Kingdom.

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.

Visit Website →

Want to dig deeper into these stocks?