WallStSmart

Allegiant Travel Company (ALGT)vsSouthwest Airlines Company (LUV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southwest Airlines Company generates 977% more annual revenue ($28.06B vs $2.61B). LUV leads profitability with a 1.6% profit margin vs -1.7%. LUV appears more attractively valued with a PEG of 0.19. LUV earns a higher WallStSmart Score of 63/100 (C+).

ALGT

Hold

48

out of 100

Grade: D+

Growth: 3.3Profit: 3.5Value: 6.7Quality: 6.0
Piotroski: 3/9

LUV

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 4.5Value: 4.7Quality: 6.5
Piotroski: 6/9Altman Z: 1.84
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ALGT.

LUVSignificantly Overvalued (-39.1%)

Margin of Safety

-39.1%

Fair Value

$36.97

Current Price

$40.19

$3.22 premium

UndervaluedFair: $36.97Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALGT2 strengths · Avg: 9.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

PEG RatioValuation
0.858/10

Growing faster than its price suggests

LUV3 strengths · Avg: 9.3/10
PEG RatioValuation
0.1910/10

Growing faster than its price suggests

EPS GrowthGrowth
50.8%10/10

Earnings expanding 50.8% YoY

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Areas to Watch

ALGT4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.5%4/10

4.5% revenue growth

Market CapQuality
$1.54B3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.713/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

LUV4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

Return on EquityProfitability
4.8%3/10

ROE of 4.8% — below average capital efficiency

Profit MarginProfitability
1.6%3/10

1.6% margin — thin

P/E RatioValuation
50.9x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : ALGT

The strongest argument for ALGT centers on Price/Book, PEG Ratio. PEG of 0.85 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 : ALGT

The primary concerns for ALGT are Revenue Growth, Market Cap, Debt/Equity. Debt-to-equity of 1.71 is elevated, increasing financial risk.

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.

Key Dynamics to Monitor

ALGT profiles as a turnaround stock while LUV is a value play — different risk/reward profiles.

ALGT carries more volatility with a beta of 1.57 — expect wider price swings.

LUV is growing revenue faster at 7.4% — sustainability is the question.

ALGT generates stronger free cash flow (90M), providing more financial flexibility.

Bottom Line

LUV scores higher overall (63/100 vs 48/100). Both earn "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.

Allegiant Travel Company

INDUSTRIALS · AIRLINES · USA

Allegiant Travel Company, a leisure travel company, provides travel products and services to residents of underserved cities in the United States. The company is headquartered in Las Vegas, Nevada.

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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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