Allegiant Travel Company (ALGT)vsSouthwest Airlines Company (LUV)
ALGT
Allegiant Travel Company
$84.12
-0.41%
INDUSTRIALS · Cap: $2.46B
LUV
Southwest Airlines Company
$41.54
+0.56%
INDUSTRIALS · Cap: $22.22B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Airlines Company generates 994% more annual revenue ($28.88B vs $2.64B). LUV leads profitability with a 2.8% profit margin vs -1.3%. LUV appears more attractively valued with a PEG of 0.31. LUV earns a higher WallStSmart Score of 66/100 (B-).
ALGT
Buy59
out of 100
Grade: C
LUV
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+17.3%
Fair Value
$132.18
Current Price
$84.12
$48.06 discount
Intrinsic value data unavailable for LUV.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Earnings expanding 32.6% YoY
Growing faster than its price suggests
Earnings expanding 50.8% YoY
Reasonable price relative to book value
Areas to Watch
4.8% revenue growth
Elevated debt levels
ROE of -3.1% — below average capital efficiency
Distress zone — elevated risk
Premium valuation, high expectations priced in
Grey zone — moderate risk
2.8% margin — thin
Operating margin of 4.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : ALGT
The strongest argument for ALGT centers on Price/Book, PEG Ratio, EPS Growth. 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. Revenue growth of 12.8% demonstrates continued momentum. PEG of 0.31 suggests the stock is reasonably priced for its growth.
Bear Case : ALGT
The primary concerns for ALGT are Revenue Growth, Debt/Equity, Return on Equity. Debt-to-equity of 1.69 is elevated, increasing financial risk.
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.
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 1.56 — 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.
Bottom Line
LUV scores higher overall (66/100 vs 59/100) and 12.8% revenue growth. ALGT offers better value entry with a 17.3% margin of safety. 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.
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.
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 AIRLINES Stocks
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