Delta Air Lines Inc (DAL)vsSouthwest Airlines Company (LUV)
DAL
Delta Air Lines Inc
$92.57
+0.50%
INDUSTRIALS · Cap: $59.56B
LUV
Southwest Airlines Company
$51.91
+0.56%
INDUSTRIALS · Cap: $24.90B
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 0.35. DAL earns a higher WallStSmart Score of 67/100 (B-).
DAL
Strong Buy67
out of 100
Grade: B-
LUV
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-75.2%
Fair Value
$52.59
Current Price
$92.57
$39.98 premium
Intrinsic value data unavailable for LUV.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Attractively priced relative to earnings
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
Areas to Watch
6.9% margin — thin
Operating margin of 3.2%
Expensive relative to growth rate
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 : DAL
The strongest argument for DAL centers on Market Cap, Return on Equity, P/E Ratio. Revenue growth of 12.9% demonstrates continued momentum.
Bull Case : LUV
The strongest argument for LUV centers on PEG Ratio, EPS Growth. Revenue growth of 12.8% demonstrates continued momentum. PEG of 0.35 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 1.31 — 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
DAL scores higher overall (67/100 vs 66/100) and 12.9% revenue growth. 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.
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