Copa Holdings SA (CPA)vsSouthwest Airlines Company (LUV)
CPA
Copa Holdings SA
$117.04
-4.69%
INDUSTRIALS · Cap: $4.81B
LUV
Southwest Airlines Company
$39.99
-3.20%
INDUSTRIALS · Cap: $19.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Airlines Company generates 698% more annual revenue ($28.88B vs $3.62B). CPA leads profitability with a 18.6% profit margin vs 2.8%. LUV appears more attractively valued with a PEG of 0.24. CPA earns a higher WallStSmart Score of 77/100 (B+).
CPA
Strong Buy77
out of 100
Grade: B+
LUV
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+15.5%
Fair Value
$178.18
Current Price
$117.04
$61.14 discount
Margin of Safety
+64.5%
Fair Value
$144.78
Current Price
$39.99
$104.79 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 26 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 22.5%
Growing faster than its price suggests
Earnings expanding 50.8% YoY
Reasonable price relative to book value
Areas to Watch
Weak financial health signals
Moderate valuation
Grey zone — moderate risk
2.8% margin — thin
Operating margin of 4.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : CPA
The strongest argument for CPA centers on P/E Ratio, Return on Equity, PEG Ratio. Profitability is solid with margins at 18.6% and operating margin at 22.5%. PEG of 0.95 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 0.24 suggests the stock is reasonably priced for its growth.
Bear Case : CPA
The primary concerns for CPA are Piotroski F-Score.
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
CPA profiles as a mature stock while LUV is a value play — different risk/reward profiles.
LUV carries more volatility with a beta of 1.11 — 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
CPA scores higher overall (77/100 vs 68/100), backed by strong 18.6% margins. LUV offers better value entry with a 64.5% margin of safety. Both earn "Strong Buy" and "Strong 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.
Copa Holdings SA
INDUSTRIALS · AIRLINES · USA
Copa Holdings, SA, provides airline passenger and cargo services. The company is headquartered in Panama City, Panama.
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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