JetBlue Airways Corp (JBLU)vsSouthwest Airlines Company (LUV)
JBLU
JetBlue Airways Corp
$4.75
+13.37%
INDUSTRIALS · Cap: $1.76B
LUV
Southwest Airlines Company
$40.19
+0.90%
INDUSTRIALS · Cap: $20.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Airlines Company generates 210% more annual revenue ($28.06B vs $9.06B). LUV leads profitability with a 1.6% profit margin vs -6.6%. LUV appears more attractively valued with a PEG of 0.19. LUV earns a higher WallStSmart Score of 63/100 (C+).
JBLU
Hold46
out of 100
Grade: D+
LUV
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for JBLU.
Margin of Safety
-39.1%
Fair Value
$36.97
Current Price
$40.19
$3.22 premium
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
Reasonable price relative to book value
Areas to Watch
Smaller company, higher risk/reward
ROE of -25.3% — below average capital efficiency
Revenue declined 1.4%
Earnings declined 82.9%
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 : 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, Price/Book. PEG of 0.19 suggests the stock is reasonably priced for its growth.
Bear Case : JBLU
The primary concerns for JBLU are Market Cap, Return on Equity, Revenue Growth. Debt-to-equity of 4.84 is elevated, increasing financial risk.
Bear Case : LUV
The primary concerns for LUV are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 50.9x leaves little room for execution misses. Thin 1.6% 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 1.70 — expect wider price swings.
LUV is growing revenue faster at 7.4% — sustainability is the question.
JBLU generates stronger free cash flow (-296M), providing more financial flexibility.
Bottom Line
LUV scores higher overall (63/100 vs 46/100). Both earn "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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