Southwest Airlines Company (LUV)vsSkyWest Inc (SKYW)
LUV
Southwest Airlines Company
$40.19
+0.90%
INDUSTRIALS · Cap: $20.78B
SKYW
SkyWest Inc
$94.13
+2.59%
INDUSTRIALS · Cap: $3.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Airlines Company generates 592% more annual revenue ($28.06B vs $4.06B). SKYW leads profitability with a 10.6% profit margin vs 1.6%. LUV appears more attractively valued with a PEG of 0.19. LUV earns a higher WallStSmart Score of 63/100 (C+).
LUV
Buy63
out of 100
Grade: C+
SKYW
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-39.1%
Fair Value
$36.97
Current Price
$40.19
$3.22 premium
Margin of Safety
-48.5%
Fair Value
$70.38
Current Price
$94.13
$23.75 premium
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
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Grey zone — moderate risk
ROE of 4.8% — below average capital efficiency
1.6% margin — thin
Premium valuation, high expectations priced in
Expensive relative to growth rate
Earnings declined 5.1%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : LUV
The strongest argument for LUV centers on PEG Ratio, EPS Growth, Price/Book. PEG of 0.19 suggests the stock is reasonably priced for its growth.
Bull Case : SKYW
The strongest argument for SKYW centers on P/E Ratio, Price/Book.
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.
Bear Case : SKYW
The primary concerns for SKYW are PEG Ratio, EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
SKYW carries more volatility with a beta of 1.62 — expect wider price swings.
SKYW is growing revenue faster at 8.5% — sustainability is the question.
SKYW generates stronger free cash flow (-27M), providing more financial flexibility.
Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LUV scores higher overall (63/100 vs 62/100). 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.
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 →SkyWest Inc
INDUSTRIALS · AIRLINES · USA
SkyWest, Inc., operates a regional airline in the United States. The company is headquartered in St. George, Utah.
Visit Website →Compare with Other AIRLINES Stocks
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