LATAM Airlines Group S.A. (LTM)vsSouthwest Airlines Company (LUV)
LTM
LATAM Airlines Group S.A.
$56.90
-2.80%
INDUSTRIALS · Cap: $16.70B
LUV
Southwest Airlines Company
$51.91
+0.56%
INDUSTRIALS · Cap: $24.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Airlines Company generates 93% more annual revenue ($28.88B vs $15.00B). LTM leads profitability with a 11.2% profit margin vs 2.8%. LUV appears more attractively valued with a PEG of 0.35. LUV earns a higher WallStSmart Score of 66/100 (B-).
LTM
Buy65
out of 100
Grade: C+
LUV
Strong Buy66
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 87 in profit
Earnings expanding 70.7% YoY
Revenue surging 21.9% year-over-year
Growing faster than its price suggests
Earnings expanding 50.8% YoY
Areas to Watch
Trading at 9.5x book value
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Premium valuation, high expectations priced in
Grey zone — moderate risk
2.8% margin — thin
Operating margin of 4.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : LTM
The strongest argument for LTM centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 21.9% 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 0.35 suggests the stock is reasonably priced for its growth.
Bear Case : LTM
The primary concerns for LTM are Price/Book, PEG Ratio, Altman Z-Score. Debt-to-equity of 4.34 is elevated, increasing financial risk.
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
LTM profiles as a growth stock while LUV is a value play — different risk/reward profiles.
LUV carries more volatility with a beta of 1.16 — expect wider price swings.
LTM is growing revenue faster at 21.9% — sustainability is the question.
LUV generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
LUV scores higher overall (66/100 vs 65/100) and 12.8% revenue growth. 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.
LATAM Airlines Group S.A.
INDUSTRIALS · AIRLINES · USA
LATAM Airlines Group SA, provides passenger and cargo air transport services in Peru, Argentina, the United States, Europe, Colombia, Brazil, Ecuador, Chile, Asia Pacific and the rest of Latin America.
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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