Southwest Airlines Company (LUV)vsPACCAR Inc (PCAR)
LUV
Southwest Airlines Company
$39.24
+1.42%
INDUSTRIALS · Cap: $18.92B
PCAR
PACCAR Inc
$122.73
+0.13%
INDUSTRIALS · Cap: $64.60B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Airlines Company generates 8% more annual revenue ($30.07B vs $27.82B). PCAR leads profitability with a 9.0% profit margin vs 2.8%. LUV appears more attractively valued with a PEG of 0.19. LUV earns a higher WallStSmart Score of 66/100 (B-).
LUV
Strong Buy66
out of 100
Grade: B-
PCAR
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for LUV.
Margin of Safety
-43.2%
Fair Value
$85.69
Current Price
$122.73
$37.04 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
16.4% revenue growth
Earnings expanding 20.5% YoY
Large-cap with strong market position
Growing faster than its price suggests
Areas to Watch
Grey zone — moderate risk
2.8% margin — thin
Operating margin of 3.4%
Negative free cash flow — burning cash
Moderate valuation
0.5% revenue growth
4.2% earnings growth
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : LUV
The strongest argument for LUV centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 16.4% demonstrates continued momentum. PEG of 0.19 suggests the stock is reasonably priced for its growth.
Bull Case : PCAR
The strongest argument for PCAR centers on Market Cap, PEG Ratio. PEG of 1.00 suggests the stock is reasonably priced for its growth.
Bear Case : LUV
The primary concerns for LUV are Altman Z-Score, Profit Margin, Operating Margin. Thin 2.8% margins leave little buffer for downturns.
Bear Case : PCAR
The primary concerns for PCAR are P/E Ratio, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
LUV profiles as a growth stock while PCAR is a value play — different risk/reward profiles.
LUV carries more volatility with a beta of 1.12 — expect wider price swings.
LUV is growing revenue faster at 16.4% — sustainability is the question.
PCAR generates stronger free cash flow (309M), providing more financial flexibility.
Bottom Line
LUV scores higher overall (66/100 vs 54/100) and 16.4% 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.
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.
Visit Website →PACCAR Inc
INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA
PACCAR Inc is an American Fortune 500 company and counts among the largest manufacturers of medium- and heavy-duty trucks in the world. PACCAR is engaged in the design, manufacture and customer support of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, Leyland Trucks, and DAF nameplates. PACCAR also designs and manufactures powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.
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