WallStSmart

Deere & Company (DE)vsSouthwest Airlines Company (LUV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Deere & Company generates 67% more annual revenue ($46.73B vs $28.06B). DE leads profitability with a 10.3% profit margin vs 1.6%. LUV appears more attractively valued with a PEG of 0.19. LUV earns a higher WallStSmart Score of 63/100 (C+).

DE

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 6.5Value: 3.3Quality: 6.3
Piotroski: 3/9Altman Z: 2.18

LUV

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 4.5Value: 5.3Quality: 5.5
Piotroski: 6/9Altman Z: 1.84
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DESignificantly Overvalued (-369.7%)

Margin of Safety

-369.7%

Fair Value

$120.63

Current Price

$566.64

$446.01 premium

UndervaluedFair: $120.63Overvalued
LUVSignificantly Overvalued (-39.1%)

Margin of Safety

-39.1%

Fair Value

$36.97

Current Price

$37.36

$0.39 premium

UndervaluedFair: $36.97Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DE1 strengths · Avg: 9.0/10
Market CapQuality
$153.05B9/10

Large-cap with strong market position

LUV3 strengths · Avg: 9.3/10
PEG RatioValuation
0.1910/10

Growing faster than its price suggests

EPS GrowthGrowth
50.8%10/10

Earnings expanding 50.8% YoY

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

DE4 concerns · Avg: 3.3/10
PEG RatioValuation
1.714/10

Expensive relative to growth rate

P/E RatioValuation
31.9x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-24.1%2/10

Earnings declined 24.1%

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

Grey zone — moderate risk

Return on EquityProfitability
4.8%3/10

ROE of 4.8% — below average capital efficiency

Profit MarginProfitability
1.6%3/10

1.6% margin — thin

P/E RatioValuation
47.3x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : DE

The strongest argument for DE centers on Market Cap. Revenue growth of 13.0% demonstrates continued momentum.

Bull Case : LUV

The strongest argument for LUV centers on PEG Ratio, EPS Growth, Price/Book. PEG of 0.19 suggests the stock is reasonably priced for its growth.

Bear Case : DE

The primary concerns for DE are PEG Ratio, P/E Ratio, Piotroski F-Score.

Bear Case : LUV

The primary concerns for LUV are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 47.3x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

LUV carries more volatility with a beta of 1.09 — expect wider price swings.

DE is growing revenue faster at 13.0% — sustainability is the question.

LUV generates stronger free cash flow (-564M), providing more financial flexibility.

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

Bottom Line

LUV scores higher overall (63/100 vs 51/100). Both earn "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.

Deere & Company

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

John Deere is the brand name of Deere & Company, an American corporation that manufactures agricultural, construction, and forestry machinery, diesel engines, drivetrains (axles, transmissions, gearboxes) used in heavy equipment, and lawn care equipment.

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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