Southwest Airlines Company (LUV)vsParker-Hannifin Corporation (PH)
LUV
Southwest Airlines Company
$39.45
+4.50%
INDUSTRIALS · Cap: $19.28B
PH
Parker-Hannifin Corporation
$974.47
+0.06%
INDUSTRIALS · Cap: $122.99B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Airlines Company generates 41% more annual revenue ($28.88B vs $20.46B). PH leads profitability with a 17.3% profit margin vs 2.8%. LUV appears more attractively valued with a PEG of 0.21. LUV earns a higher WallStSmart Score of 68/100 (B-).
LUV
Strong Buy68
out of 100
Grade: B-
PH
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+64.5%
Fair Value
$144.78
Current Price
$39.45
$105.33 discount
Intrinsic value data unavailable for PH.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Earnings expanding 50.8% YoY
Reasonable price relative to book value
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Strong operational efficiency at 21.7%
Areas to Watch
Moderate valuation
Grey zone — moderate risk
2.8% margin — thin
Operating margin of 4.5%
Premium valuation, high expectations priced in
Trading at 8.6x book value
Expensive relative to growth rate
Earnings declined 9.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : LUV
The strongest argument for LUV centers on PEG Ratio, EPS Growth, Price/Book. Revenue growth of 12.8% demonstrates continued momentum. PEG of 0.21 suggests the stock is reasonably priced for its growth.
Bull Case : PH
The strongest argument for PH centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 17.3% and operating margin at 21.7%.
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.
Bear Case : PH
The primary concerns for PH are P/E Ratio, Price/Book, PEG Ratio.
Key Dynamics to Monitor
LUV profiles as a value stock while PH is a mature play — different risk/reward profiles.
PH carries more volatility with a beta of 1.25 — expect wider price swings.
LUV is growing revenue faster at 12.8% — sustainability is the question.
LUV generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
LUV scores higher overall (68/100 vs 54/100) 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.
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 →Parker-Hannifin Corporation
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Parker-Hannifin Corporation, originally Parker Appliance Company, usually referred to as just Parker, is an American corporation specializing in motion and control technologies. Its corporate headquarters are in Mayfield Heights, Ohio, in Greater Cleveland.
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