Delta Air Lines Inc (DAL)vsSouthwest Airlines Company (LUV)
DAL
Delta Air Lines Inc
$71.20
-2.90%
INDUSTRIALS · Cap: $48.18B
LUV
Southwest Airlines Company
$39.99
-3.20%
INDUSTRIALS · Cap: $19.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Delta Air Lines Inc generates 126% more annual revenue ($65.18B vs $28.88B). DAL leads profitability with a 6.9% profit margin vs 2.8%. LUV appears more attractively valued with a PEG of 0.24. LUV earns a higher WallStSmart Score of 68/100 (B-).
DAL
Strong Buy67
out of 100
Grade: B-
LUV
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+19.6%
Fair Value
$88.87
Current Price
$71.20
$17.67 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 25 in profit
Reasonable price relative to book value
Earnings expanding 44.6% YoY
Generating 1.2B in free cash flow
Growing faster than its price suggests
Earnings expanding 50.8% YoY
Reasonable price relative to book value
Areas to Watch
6.9% margin — thin
Operating margin of 3.2%
Expensive relative to growth rate
Moderate valuation
Grey zone — moderate risk
2.8% margin — thin
Operating margin of 4.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : DAL
The strongest argument for DAL centers on P/E Ratio, Return on Equity, Price/Book. Revenue growth of 12.9% demonstrates continued momentum.
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 : DAL
The primary concerns for DAL are Profit Margin, Operating Margin, PEG Ratio.
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
DAL carries more volatility with a beta of 1.25 — expect wider price swings.
DAL is growing revenue faster at 12.9% — sustainability is the question.
DAL generates stronger free cash flow (1.2B), providing more financial flexibility.
Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LUV scores higher overall (68/100 vs 67/100) and 12.8% revenue growth. DAL offers better value entry with a 19.6% 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.
Delta Air Lines Inc
INDUSTRIALS · AIRLINES · USA
Delta Air Lines, Inc., typically referred to as Delta, is one of the major airlines of the United States and a legacy carrier. It is headquartered in Atlanta, Georgia.
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
Want to dig deeper into these stocks?