JetBlue Airways Corp (JBLU)vsSouthwest Airlines Company (LUV)
JBLU
JetBlue Airways Corp
$3.81
-5.22%
INDUSTRIALS · Cap: $1.49B
LUV
Southwest Airlines Company
$45.23
-2.69%
INDUSTRIALS · Cap: $22.67B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Airlines Company generates 216% more annual revenue ($31.55B vs $9.99B). LUV leads profitability with a 3.3% profit margin vs -10.0%. LUV appears more attractively valued with a PEG of 0.22. LUV earns a higher WallStSmart Score of 68/100 (B-).
JBLU
Buy52
out of 100
Grade: C-
LUV
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+69.4%
Fair Value
$19.00
Current Price
$3.81
$15.19 discount
Intrinsic value data unavailable for LUV.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Revenue surging 21.1% year-over-year
Growing faster than its price suggests
Earnings expanding 450.0% YoY
Revenue surging 21.2% year-over-year
Areas to Watch
Smaller company, higher risk/reward
ROE of -39.4% — below average capital efficiency
Earnings declined 82.9%
Negative free cash flow — burning cash
Grey zone — moderate risk
3.3% margin — thin
Operating margin of 4.5%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : JBLU
The strongest argument for JBLU centers on Price/Book, PEG Ratio, Revenue Growth. Revenue growth of 21.1% demonstrates continued momentum. PEG of 0.88 suggests the stock is reasonably priced for its growth.
Bull Case : LUV
The strongest argument for LUV centers on PEG Ratio, EPS Growth, Revenue Growth. Revenue growth of 21.2% demonstrates continued momentum. PEG of 0.22 suggests the stock is reasonably priced for its growth.
Bear Case : JBLU
The primary concerns for JBLU are Market Cap, Return on Equity, EPS Growth. Debt-to-equity of 6.99 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
JBLU carries more volatility with a beta of 1.90 — expect wider price swings.
LUV is growing revenue faster at 21.2% — sustainability is the question.
JBLU generates stronger free cash flow (-465M), providing more financial flexibility.
Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LUV scores higher overall (68/100 vs 52/100) and 21.2% revenue growth. JBLU offers better value entry with a 69.4% margin of safety. 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.
JetBlue Airways Corp
INDUSTRIALS · AIRLINES · USA
JetBlue Airways Corporation provides passenger air transportation services. The company is headquartered in Long Island City, New York.
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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