AGCO Corporation (AGCO)vsSouthwest Airlines Company (LUV)
AGCO
AGCO Corporation
$113.53
-2.08%
INDUSTRIALS · Cap: $8.22B
LUV
Southwest Airlines Company
$37.36
-5.49%
INDUSTRIALS · Cap: $18.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Airlines Company generates 178% more annual revenue ($28.06B vs $10.08B). AGCO leads profitability with a 7.2% profit margin vs 1.6%. LUV appears more attractively valued with a PEG of 0.19. AGCO earns a higher WallStSmart Score of 68/100 (B-).
AGCO
Strong Buy68
out of 100
Grade: B-
LUV
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+69.7%
Fair Value
$456.30
Current Price
$113.53
$342.77 discount
Margin of Safety
-39.1%
Fair Value
$36.97
Current Price
$37.36
$0.39 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 922.0% YoY
Reasonable price relative to book value
Growing faster than its price suggests
Earnings expanding 50.8% YoY
Reasonable price relative to book value
Areas to Watch
1.1% revenue growth
7.2% margin — thin
Grey zone — moderate risk
ROE of 4.8% — below average capital efficiency
1.6% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : AGCO
The strongest argument for AGCO centers on P/E Ratio, EPS Growth, Price/Book. PEG of 1.11 suggests the stock is reasonably priced for its growth.
Bull 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.
Bear Case : AGCO
The primary concerns for AGCO are Revenue Growth, Profit Margin.
Bear Case : LUV
The primary concerns for LUV are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 47.3x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
AGCO carries more volatility with a beta of 1.11 — expect wider price swings.
LUV is growing revenue faster at 7.4% — sustainability is the question.
AGCO generates stronger free cash flow (675M), providing more financial flexibility.
Monitor FARM & HEAVY CONSTRUCTION MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AGCO scores higher overall (68/100 vs 63/100). 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.
AGCO Corporation
INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA
AGCO Corporation manufactures and distributes agricultural equipment and related spare parts worldwide. The company is headquartered in Duluth, Georgia.
Visit Website →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 →Compare with Other FARM & HEAVY CONSTRUCTION MACHINERY Stocks
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