WallStSmart

Delta Air Lines Inc (DAL)vsSouthwest Airlines Company (LUV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Delta Air Lines Inc generates 127% more annual revenue ($68.29B vs $30.07B). DAL leads profitability with a 5.8% profit margin vs 2.8%. LUV appears more attractively valued with a PEG of 0.19. LUV earns a higher WallStSmart Score of 66/100 (B-).

DAL

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 6.0Value: 4.0Quality: 4.5
Piotroski: 4/9Altman Z: 1.20

LUV

Strong Buy

66

out of 100

Grade: B-

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DALSignificantly Overvalued (-41.8%)

Margin of Safety

-41.8%

Fair Value

$55.52

Current Price

$79.91

$24.39 premium

UndervaluedFair: $55.52Overvalued

Intrinsic value data unavailable for LUV.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DAL4 strengths · Avg: 8.3/10
Market CapQuality
$51.93B9/10

Large-cap with strong market position

P/E RatioValuation
13.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
18.7%8/10

18.7% revenue growth

LUV4 strengths · Avg: 8.5/10
PEG RatioValuation
0.1910/10

Growing faster than its price suggests

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.4%8/10

16.4% revenue growth

EPS GrowthGrowth
20.5%8/10

Earnings expanding 20.5% YoY

Areas to Watch

DAL4 concerns · Avg: 2.3/10
Profit MarginProfitability
5.8%3/10

5.8% margin — thin

PEG RatioValuation
39.292/10

Expensive relative to growth rate

EPS GrowthGrowth
-25.4%2/10

Earnings declined 25.4%

Altman Z-ScoreHealth
1.202/10

Distress zone — elevated risk

LUV4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Operating MarginProfitability
3.4%3/10

Operating margin of 3.4%

Free Cash FlowQuality
$-454.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : DAL

The strongest argument for DAL centers on Market Cap, P/E Ratio, Price/Book. Revenue growth of 18.7% demonstrates continued momentum.

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 : DAL

The primary concerns for DAL are Profit Margin, PEG Ratio, EPS Growth.

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

DAL carries more volatility with a beta of 1.29 — expect wider price swings.

DAL is growing revenue faster at 18.7% — sustainability is the question.

DAL generates stronger free cash flow (395M), providing more financial flexibility.

Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LUV scores higher overall (66/100 vs 57/100) and 16.4% 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.

Delta Air Lines Inc

INDUSTRIALS · AIRLINES · USA

Delta Air Lines, Inc., typically referred to as Delta, is one of the major airlines of the United States and a legacy carrier. It is headquartered in Atlanta, Georgia.

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?