WallStSmart

Delta Air Lines Inc (DAL)vsUnited Airlines Holdings Inc (UAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Delta Air Lines Inc generates 7% more annual revenue ($63.36B vs $59.07B). DAL leads profitability with a 7.9% profit margin vs 5.7%. UAL appears more attractively valued with a PEG of 5.95. DAL earns a higher WallStSmart Score of 67/100 (B-).

DAL

Strong Buy

67

out of 100

Grade: B-

Growth: 6.7Profit: 6.5Value: 7.3Quality: 4.5
Piotroski: 4/9

UAL

Buy

60

out of 100

Grade: C

Growth: 5.3Profit: 6.0Value: 7.3Quality: 4.0
Piotroski: 6/9Altman Z: 1.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DALUndervalued (+80.1%)

Margin of Safety

+80.1%

Fair Value

$358.49

Current Price

$63.44

$295.05 discount

UndervaluedFair: $358.49Overvalued
UALUndervalued (+43.5%)

Margin of Safety

+43.5%

Fair Value

$201.55

Current Price

$89.95

$111.60 discount

UndervaluedFair: $201.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DAL5 strengths · Avg: 8.6/10
P/E RatioValuation
7.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
27.7%9/10

Every $100 of equity generates 28 in profit

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

EPS GrowthGrowth
44.6%8/10

Earnings expanding 44.6% YoY

Free Cash FlowQuality
$1.35B8/10

Generating 1.4B in free cash flow

UAL3 strengths · Avg: 9.0/10
P/E RatioValuation
8.8x10/10

Attractively priced relative to earnings

Return on EquityProfitability
24.0%9/10

Every $100 of equity generates 24 in profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

DAL3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Profit MarginProfitability
7.9%3/10

7.9% margin — thin

PEG RatioValuation
39.292/10

Expensive relative to growth rate

UAL4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Profit MarginProfitability
5.7%3/10

5.7% margin — thin

PEG RatioValuation
5.952/10

Expensive relative to growth rate

Free Cash FlowQuality
$-604.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : DAL

The strongest argument for DAL centers on P/E Ratio, Return on Equity, Price/Book.

Bull Case : UAL

The strongest argument for UAL centers on P/E Ratio, Return on Equity, Price/Book.

Bear Case : DAL

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

Bear Case : UAL

The primary concerns for UAL are Revenue Growth, Profit Margin, PEG Ratio. Debt-to-equity of 2.39 is elevated, increasing financial risk.

Key Dynamics to Monitor

DAL carries more volatility with a beta of 1.35 — expect wider price swings.

UAL is growing revenue faster at 4.8% — 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 60/100). UAL offers better value entry with a 43.5% 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.

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.

United Airlines Holdings Inc

INDUSTRIALS · AIRLINES · USA

United Airlines Holdings, Inc. (formerly known as United Continental Holdings, Inc., UAL Corporation, Allegis Corporation and founded originally as UAL, Inc.) is a publicly traded airline holding company headquartered in the Willis Tower in Chicago. UAH owns and operates United Airlines, Inc.

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