WallStSmart

Deere & Company (DE)vsSouthwest Airlines Company (LUV)

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Smart Verdict

WallStSmart Research — data-driven comparison

Deere & Company generates 52% more annual revenue ($47.93B vs $31.55B). DE leads profitability with a 10.2% profit margin vs 3.3%. LUV appears more attractively valued with a PEG of 0.22. LUV earns a higher WallStSmart Score of 70/100 (B).

DE

Buy

53

out of 100

Grade: C-

Growth: 4.0Profit: 6.5Value: 4.3Quality: 4.0
Piotroski: 3/9Altman Z: 2.18

LUV

Strong Buy

70

out of 100

Grade: B

Growth: 8.0Profit: 5.0Value: 7.0Quality: 5.5
Piotroski: 6/9Altman Z: 1.84

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DE2 strengths · Avg: 8.5/10
Market CapQuality
$173.06B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.94B8/10

Generating 1.9B in free cash flow

LUV4 strengths · Avg: 9.0/10
PEG RatioValuation
0.2210/10

Growing faster than its price suggests

EPS GrowthGrowth
450.0%10/10

Earnings expanding 450.0% YoY

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
21.2%8/10

Revenue surging 21.2% year-over-year

Areas to Watch

DE4 concerns · Avg: 3.8/10
PEG RatioValuation
1.594/10

Expensive relative to growth rate

P/E RatioValuation
35.7x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

LUV4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

Profit MarginProfitability
3.3%3/10

3.3% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Free Cash FlowQuality
$-495.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : DE

The strongest argument for DE centers on Market Cap, Free Cash Flow.

Bull Case : LUV

The strongest argument for LUV centers on PEG Ratio, EPS Growth, Price/Book. Revenue growth of 21.2% demonstrates continued momentum. PEG of 0.22 suggests the stock is reasonably priced for its growth.

Bear Case : DE

The primary concerns for DE are PEG Ratio, P/E Ratio, Revenue Growth. Debt-to-equity of 2.29 is elevated, increasing financial risk.

Bear Case : LUV

The primary concerns for LUV are Altman Z-Score, Profit Margin, Operating Margin. Thin 3.3% margins leave little buffer for downturns.

Key Dynamics to Monitor

DE profiles as a value stock while LUV is a growth play — different risk/reward profiles.

LUV carries more volatility with a beta of 1.16 — expect wider price swings.

LUV is growing revenue faster at 21.2% — sustainability is the question.

DE generates stronger free cash flow (1.9B), providing more financial flexibility.

Bottom Line

LUV scores higher overall (70/100 vs 53/100) and 21.2% revenue growth. 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.

Deere & Company

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

John Deere is the brand name of Deere & Company, an American corporation that manufactures agricultural, construction, and forestry machinery, diesel engines, drivetrains (axles, transmissions, gearboxes) used in heavy equipment, and lawn care equipment.

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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