Howmet Aerospace Inc (HWM)vsSouthwest Airlines Company (LUV)
HWM
Howmet Aerospace Inc
$250.72
-1.88%
INDUSTRIALS · Cap: $109.27B
LUV
Southwest Airlines Company
$42.95
-0.83%
INDUSTRIALS · Cap: $20.99B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Airlines Company generates 235% more annual revenue ($28.88B vs $8.62B). HWM leads profitability with a 20.2% profit margin vs 2.8%. LUV appears more attractively valued with a PEG of 0.29. HWM earns a higher WallStSmart Score of 73/100 (B).
HWM
Strong Buy73
out of 100
Grade: B
LUV
Strong Buy66
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 32 in profit
Earnings expanding 71.4% YoY
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Growing faster than its price suggests
Strong operational efficiency at 28.2%
Growing faster than its price suggests
Earnings expanding 50.8% YoY
Areas to Watch
Trading at 18.8x book value
Premium valuation, high expectations priced in
Moderate valuation
Grey zone — moderate risk
2.8% margin — thin
Operating margin of 4.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : HWM
The strongest argument for HWM centers on Return on Equity, EPS Growth, Market Cap. Profitability is solid with margins at 20.2% and operating margin at 28.2%. Revenue growth of 19.1% demonstrates continued momentum.
Bull Case : LUV
The strongest argument for LUV centers on PEG Ratio, EPS Growth. Revenue growth of 12.8% demonstrates continued momentum. PEG of 0.29 suggests the stock is reasonably priced for its growth.
Bear Case : HWM
The primary concerns for HWM are Price/Book, P/E Ratio. A P/E of 63.4x leaves little room for execution misses.
Bear Case : LUV
The primary concerns for LUV are P/E Ratio, Altman Z-Score, Profit Margin. Thin 2.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
HWM profiles as a growth stock while LUV is a value play — different risk/reward profiles.
HWM carries more volatility with a beta of 1.19 — expect wider price swings.
HWM is growing revenue faster at 19.1% — sustainability is the question.
LUV generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
HWM scores higher overall (73/100 vs 66/100), backed by strong 20.2% margins and 19.1% revenue growth. Both earn "Strong Buy" and "Strong 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.
Howmet Aerospace Inc
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Howmet Aerospace Inc. is an American aerospace company based in Pittsburgh, Pennsylvania. The company manufactures components for jet engines, fasteners and titanium structures for aerospace applications, and forged aluminum wheels for heavy trucks.
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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