WallStSmart

Southwest Airlines Company (LUV)vsSun Country Airlines Holdings Inc (SNCY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southwest Airlines Company generates 2437% more annual revenue ($28.88B vs $1.14B). SNCY leads profitability with a 3.5% profit margin vs 2.8%. SNCY trades at a lower P/E of 23.3x. LUV earns a higher WallStSmart Score of 66/100 (B-).

LUV

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 4.5Value: 6.3Quality: 5.5
Piotroski: 6/9Altman Z: 1.84

SNCY

Hold

45

out of 100

Grade: D

Growth: 4.0Profit: 5.0Value: 5.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for LUV.

SNCYFair Value (-4.2%)

Margin of Safety

-4.2%

Fair Value

$20.00

Current Price

$16.17

$3.83 premium

UndervaluedFair: $20.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LUV3 strengths · Avg: 9.3/10
PEG RatioValuation
0.3110/10

Growing faster than its price suggests

EPS GrowthGrowth
50.8%10/10

Earnings expanding 50.8% YoY

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

SNCY1 strengths · Avg: 10.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Areas to Watch

LUV4 concerns · Avg: 3.5/10
P/E RatioValuation
30.3x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

SNCY4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.6%4/10

3.6% revenue growth

Market CapQuality
$922.42M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.4%3/10

ROE of 6.4% — below average capital efficiency

Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull 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 0.31 suggests the stock is reasonably priced for its growth.

Bull Case : SNCY

The strongest argument for SNCY centers on Price/Book.

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 : SNCY

The primary concerns for SNCY are Revenue Growth, Market Cap, Return on Equity. Thin 3.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

SNCY carries more volatility with a beta of 1.40 — 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.

Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LUV scores higher overall (66/100 vs 45/100) and 12.8% revenue growth. Both earn "Strong Buy" and "Hold" 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.

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Sun Country Airlines Holdings Inc

INDUSTRIALS · AIRLINES · USA

Sun Country Airlines Holdings, Inc., an air transportation company, provides scheduled passenger service, air cargo service, charter air transportation, and related services in the United States, Latin America, and internationally. The company is headquartered in Minneapolis, Minnesota.

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