LATAM Airlines Group S.A. (LTM)vsSouthwest Airlines Company (LUV)
LTM
LATAM Airlines Group S.A.
$47.71
-3.24%
INDUSTRIALS · Cap: $14.49B
LUV
Southwest Airlines Company
$39.41
-3.57%
INDUSTRIALS · Cap: $20.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Airlines Company generates 97% more annual revenue ($28.06B vs $14.27B). LTM leads profitability with a 10.2% profit margin vs 1.6%. LUV appears more attractively valued with a PEG of 0.20. LUV earns a higher WallStSmart Score of 63/100 (C+).
LTM
Buy63
out of 100
Grade: C+
LUV
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+73.6%
Fair Value
$232.13
Current Price
$47.71
$184.42 discount
Margin of Safety
-39.1%
Fair Value
$36.97
Current Price
$39.41
$2.44 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 143 in profit
Earnings expanding 87.5% YoY
16.1% revenue growth
Growing faster than its price suggests
Earnings expanding 50.8% YoY
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
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 : LTM
The strongest argument for LTM centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 16.1% demonstrates continued momentum.
Bull Case : LUV
The strongest argument for LUV centers on PEG Ratio, EPS Growth, Price/Book. PEG of 0.20 suggests the stock is reasonably priced for its growth.
Bear Case : LTM
The primary concerns for LTM are PEG Ratio, Altman Z-Score.
Bear Case : LUV
The primary concerns for LUV are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 50.9x leaves little room for execution misses. Thin 1.6% 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 1.09 — expect wider price swings.
LTM is growing revenue faster at 16.1% — sustainability is the question.
LTM generates stronger free cash flow (571M), providing more financial flexibility.
Bottom Line
LTM scores higher overall (63/100 vs 63/100) and 16.1% 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.
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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