Alaska Air Group Inc (ALK)vsSouthwest Airlines Company (LUV)
ALK
Alaska Air Group Inc
$39.28
+2.08%
INDUSTRIALS · Cap: $4.41B
LUV
Southwest Airlines Company
$40.19
+0.90%
INDUSTRIALS · Cap: $20.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Airlines Company generates 97% more annual revenue ($28.06B vs $14.24B). LUV leads profitability with a 1.6% profit margin vs 0.7%. LUV appears more attractively valued with a PEG of 0.19. LUV earns a higher WallStSmart Score of 63/100 (C+).
ALK
Hold49
out of 100
Grade: D+
LUV
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-919.5%
Fair Value
$5.64
Current Price
$39.28
$33.64 premium
Margin of Safety
-39.1%
Fair Value
$36.97
Current Price
$40.19
$3.22 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
2.8% revenue growth
ROE of 2.4% — below average capital efficiency
0.7% margin — thin
Operating margin of 3.2%
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 : ALK
The strongest argument for ALK centers on Price/Book. PEG of 1.20 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 : ALK
The primary concerns for ALK are Revenue Growth, Return on Equity, Profit Margin. A P/E of 46.4x leaves little room for execution misses. Thin 0.7% margins leave little buffer for downturns.
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
ALK carries more volatility with a beta of 1.16 — expect wider price swings.
LUV is growing revenue faster at 7.4% — sustainability is the question.
ALK generates stronger free cash flow (-440M), providing more financial flexibility.
Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LUV scores higher overall (63/100 vs 49/100). 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.
Alaska Air Group Inc
INDUSTRIALS · AIRLINES · USA
Alaska Air Group is an airline holding company based in SeaTac, Washington, United States.
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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