Copa Holdings SA (CPA)vsSouthwest Airlines Company (LUV)
CPA
Copa Holdings SA
$108.98
-1.59%
INDUSTRIALS · Cap: $4.78B
LUV
Southwest Airlines Company
$39.41
-3.57%
INDUSTRIALS · Cap: $20.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Airlines Company generates 676% more annual revenue ($28.06B vs $3.62B). CPA leads profitability with a 18.6% profit margin vs 1.6%. LUV appears more attractively valued with a PEG of 0.20. CPA earns a higher WallStSmart Score of 77/100 (B+).
CPA
Strong Buy77
out of 100
Grade: B+
LUV
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+40.6%
Fair Value
$253.50
Current Price
$108.98
$144.52 discount
Margin of Safety
-39.1%
Fair Value
$36.97
Current Price
$39.41
$2.44 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 26 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 22.5%
Growing faster than its price suggests
Earnings expanding 50.8% YoY
Reasonable price relative to book value
Areas to Watch
Weak financial health signals
Grey zone — moderate risk
ROE of 4.8% — below average capital efficiency
1.6% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : CPA
The strongest argument for CPA centers on P/E Ratio, Return on Equity, PEG Ratio. Profitability is solid with margins at 18.6% and operating margin at 22.5%. PEG of 0.95 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. PEG of 0.20 suggests the stock is reasonably priced for its growth.
Bear Case : CPA
The primary concerns for CPA are Piotroski F-Score.
Bear Case : LUV
The primary concerns for LUV are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 50.9x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
CPA profiles as a mature stock while LUV is a value play — different risk/reward profiles.
LUV carries more volatility with a beta of 1.09 — expect wider price swings.
CPA is growing revenue faster at 9.6% — sustainability is the question.
CPA generates stronger free cash flow (352M), providing more financial flexibility.
Bottom Line
CPA scores higher overall (77/100 vs 63/100), backed by strong 18.6% margins. 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.
Copa Holdings SA
INDUSTRIALS · AIRLINES · USA
Copa Holdings, SA, provides airline passenger and cargo services. The company is headquartered in Panama City, Panama.
Visit Website →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 →Compare with Other AIRLINES Stocks
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