Deere & Company (DE)vsSouthwest Airlines Company (LUV)
DE
Deere & Company
$566.64
-1.97%
INDUSTRIALS · Cap: $153.05B
LUV
Southwest Airlines Company
$37.36
-5.49%
INDUSTRIALS · Cap: $18.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Deere & Company generates 67% more annual revenue ($46.73B vs $28.06B). DE leads profitability with a 10.3% profit margin vs 1.6%. LUV appears more attractively valued with a PEG of 0.19. LUV earns a higher WallStSmart Score of 63/100 (C+).
DE
Buy51
out of 100
Grade: C-
LUV
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-369.7%
Fair Value
$120.63
Current Price
$566.64
$446.01 premium
Margin of Safety
-39.1%
Fair Value
$36.97
Current Price
$37.36
$0.39 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Growing faster than its price suggests
Earnings expanding 50.8% YoY
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Weak financial health signals
Earnings declined 24.1%
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 : DE
The strongest argument for DE centers on Market Cap. Revenue growth of 13.0% demonstrates continued momentum.
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 : DE
The primary concerns for DE are PEG Ratio, P/E Ratio, Piotroski F-Score.
Bear Case : LUV
The primary concerns for LUV are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 47.3x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
LUV carries more volatility with a beta of 1.09 — expect wider price swings.
DE is growing revenue faster at 13.0% — sustainability is the question.
LUV generates stronger free cash flow (-564M), providing more financial flexibility.
Monitor FARM & HEAVY CONSTRUCTION MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LUV scores higher overall (63/100 vs 51/100). Both earn "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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