American Airlines Group (AAL)vsSouthwest Airlines Company (LUV)
AAL
American Airlines Group
$13.01
+1.25%
INDUSTRIALS · Cap: $8.57B
LUV
Southwest Airlines Company
$39.24
+1.42%
INDUSTRIALS · Cap: $18.92B
Smart Verdict
WallStSmart Research — data-driven comparison
American Airlines Group generates 94% more annual revenue ($58.34B vs $30.07B). LUV leads profitability with a 2.8% profit margin vs -0.6%. AAL appears more attractively valued with a PEG of 0.09. LUV earns a higher WallStSmart Score of 66/100 (B-).
AAL
Hold46
out of 100
Grade: D+
LUV
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.7%
Fair Value
$21.33
Current Price
$13.01
$8.32 discount
Intrinsic value data unavailable for LUV.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Conservative balance sheet, low leverage
16.3% revenue growth
Growing faster than its price suggests
Reasonable price relative to book value
16.4% revenue growth
Earnings expanding 20.5% YoY
Areas to Watch
ROE of 0.0% — below average capital efficiency
Operating margin of 2.8%
Weak financial health signals
Earnings declined 88.2%
Grey zone — moderate risk
2.8% margin — thin
Operating margin of 3.4%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : AAL
The strongest argument for AAL centers on PEG Ratio, Debt/Equity, Revenue Growth. Revenue growth of 16.3% demonstrates continued momentum. PEG of 0.09 suggests the stock is reasonably priced for its growth.
Bull 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.
Bear Case : AAL
The primary concerns for AAL are Return on Equity, Operating Margin, Piotroski F-Score.
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.
Key Dynamics to Monitor
AAL carries more volatility with a beta of 1.33 — expect wider price swings.
LUV is growing revenue faster at 16.4% — sustainability is the question.
AAL generates stronger free cash flow (-351M), providing more financial flexibility.
Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LUV scores higher overall (66/100 vs 46/100) and 16.4% revenue growth. AAL offers better value entry with a 32.7% margin of safety. 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.
American Airlines Group
INDUSTRIALS · AIRLINES · USA
American Airlines Group Inc. is an American publicly traded airline holding company headquartered in Fort Worth, Texas.
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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