GE Aerospace (GE)vsSouthwest Airlines Company (LUV)
GE
GE Aerospace
$282.81
-0.85%
INDUSTRIALS · Cap: $298.31B
LUV
Southwest Airlines Company
$37.36
-5.49%
INDUSTRIALS · Cap: $18.36B
Smart Verdict
WallStSmart Research — data-driven comparison
GE Aerospace generates 63% more annual revenue ($45.85B vs $28.06B). GE leads profitability with a 19.0% profit margin vs 1.6%. LUV appears more attractively valued with a PEG of 0.19. GE earns a higher WallStSmart Score of 65/100 (C+).
GE
Buy65
out of 100
Grade: C+
LUV
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+25.0%
Fair Value
$377.21
Current Price
$282.81
$94.40 discount
Margin of Safety
-39.1%
Fair Value
$36.97
Current Price
$37.36
$0.39 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 45 in profit
17.6% revenue growth
Earnings expanding 37.4% YoY
Generating 1.8B in free cash flow
Growing faster than its price suggests
Earnings expanding 50.8% YoY
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Trading at 15.9x book value
Distress zone — elevated risk
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 : GE
The strongest argument for GE centers on Market Cap, Return on Equity, Revenue Growth. Profitability is solid with margins at 19.0% and operating margin at 19.6%. Revenue growth of 17.6% 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 : GE
The primary concerns for GE are P/E Ratio, Price/Book, Altman Z-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
GE profiles as a growth stock while LUV is a value play — different risk/reward profiles.
GE carries more volatility with a beta of 1.37 — expect wider price swings.
GE is growing revenue faster at 17.6% — sustainability is the question.
GE generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
GE scores higher overall (65/100 vs 63/100), backed by strong 19.0% margins and 17.6% revenue growth. 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.
GE Aerospace
INDUSTRIALS · AEROSPACE & DEFENSE · USA
General Electric Company (GE) is an American multinational conglomerate incorporated in New York City and headquartered in Boston. As of 2018, the company operates through the following segments: aviation, healthcare, power, renewable energy, digital industry, additive manufacturing and venture capital and finance.
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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