Delta Air Lines Inc (DAL)vsSouthwest Airlines Company (LUV)
DAL
Delta Air Lines Inc
$63.44
-2.42%
INDUSTRIALS · Cap: $39.74B
LUV
Southwest Airlines Company
$39.41
-3.57%
INDUSTRIALS · Cap: $20.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Delta Air Lines Inc generates 126% more annual revenue ($63.36B vs $28.06B). DAL leads profitability with a 7.9% profit margin vs 1.6%. LUV appears more attractively valued with a PEG of 0.20. DAL earns a higher WallStSmart Score of 67/100 (B-).
DAL
Strong Buy67
out of 100
Grade: B-
LUV
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+80.1%
Fair Value
$358.49
Current Price
$63.44
$295.05 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 28 in profit
Reasonable price relative to book value
Earnings expanding 44.6% YoY
Generating 1.4B in free cash flow
Growing faster than its price suggests
Earnings expanding 50.8% YoY
Reasonable price relative to book value
Areas to Watch
2.9% revenue growth
7.9% margin — thin
Expensive relative to growth rate
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 : DAL
The strongest argument for DAL centers on P/E Ratio, Return on Equity, Price/Book.
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 : DAL
The primary concerns for DAL are Revenue Growth, Profit Margin, PEG Ratio.
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
DAL carries more volatility with a beta of 1.35 — expect wider price swings.
LUV is growing revenue faster at 7.4% — sustainability is the question.
DAL generates stronger free cash flow (1.4B), providing more financial flexibility.
Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DAL scores higher overall (67/100 vs 63/100). 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.
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