JetBlue Airways Corp (JBLU)vsSouthwest Airlines Company (LUV)
JBLU
JetBlue Airways Corp
$6.00
+0.21%
INDUSTRIALS · Cap: $2.15B
LUV
Southwest Airlines Company
$51.91
+0.56%
INDUSTRIALS · Cap: $24.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Airlines Company generates 215% more annual revenue ($28.88B vs $9.16B). LUV leads profitability with a 2.8% profit margin vs -7.8%. LUV appears more attractively valued with a PEG of 0.35. LUV earns a higher WallStSmart Score of 66/100 (B-).
JBLU
Hold47
out of 100
Grade: D+
LUV
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+68.3%
Fair Value
$18.34
Current Price
$6.00
$12.34 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
Growing faster than its price suggests
Earnings expanding 50.8% YoY
Areas to Watch
4.7% revenue growth
ROE of -39.4% — below average capital efficiency
Earnings declined 82.9%
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 : JBLU
The strongest argument for JBLU centers on Price/Book, PEG Ratio. 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 of 12.8% demonstrates continued momentum. PEG of 0.35 suggests the stock is reasonably priced for its growth.
Bear Case : JBLU
The primary concerns for JBLU are Revenue Growth, Return on Equity, EPS Growth. Debt-to-equity of 5.16 is elevated, increasing financial risk.
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
JBLU profiles as a turnaround stock while LUV is a value play — different risk/reward profiles.
JBLU carries more volatility with a beta of 1.75 — expect wider price swings.
LUV is growing revenue faster at 12.8% — sustainability is the question.
LUV generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
LUV scores higher overall (66/100 vs 47/100) and 12.8% revenue growth. JBLU offers better value entry with a 68.3% margin of safety. Both earn "Strong Buy" and "Hold" 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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