Southwest Airlines Company (LUV)vsUnited Airlines Holdings Inc (UAL)
LUV
Southwest Airlines Company
$39.41
-3.57%
INDUSTRIALS · Cap: $20.78B
UAL
United Airlines Holdings Inc
$89.95
-4.46%
INDUSTRIALS · Cap: $29.23B
Smart Verdict
WallStSmart Research — data-driven comparison
United Airlines Holdings Inc generates 110% more annual revenue ($59.07B vs $28.06B). UAL leads profitability with a 5.7% 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+).
LUV
Buy63
out of 100
Grade: C+
UAL
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-39.1%
Fair Value
$36.97
Current Price
$39.41
$2.44 premium
Margin of Safety
+43.5%
Fair Value
$201.55
Current Price
$89.95
$111.60 discount
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
Every $100 of equity generates 24 in profit
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
4.8% revenue growth
5.7% margin — thin
Expensive relative to growth rate
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 0.20 suggests the stock is reasonably priced for its growth.
Bull Case : UAL
The strongest argument for UAL centers on P/E Ratio, Return on Equity, 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 : UAL
The primary concerns for UAL are Revenue Growth, Profit Margin, PEG Ratio. Debt-to-equity of 2.39 is elevated, increasing financial risk.
Key Dynamics to Monitor
UAL carries more volatility with a beta of 1.25 — expect wider price swings.
LUV is growing revenue faster at 7.4% — sustainability is the question.
LUV generates stronger free cash flow (-564M), providing more financial flexibility.
Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LUV scores higher overall (63/100 vs 60/100). UAL offers better value entry with a 43.5% margin of safety. 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 →United Airlines Holdings Inc
INDUSTRIALS · AIRLINES · USA
United Airlines Holdings, Inc. (formerly known as United Continental Holdings, Inc., UAL Corporation, Allegis Corporation and founded originally as UAL, Inc.) is a publicly traded airline holding company headquartered in the Willis Tower in Chicago. UAH owns and operates United Airlines, Inc.
Visit Website →Compare with Other AIRLINES Stocks
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