WallStSmart

Southwest Airlines Company (LUV)vsMesa Air Group Inc (MESA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southwest Airlines Company generates 7014% more annual revenue ($28.88B vs $406.02M). LUV leads profitability with a 2.8% profit margin vs -43.7%. LUV earns a higher WallStSmart Score of 66/100 (B-).

LUV

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 4.5Value: 6.3Quality: 5.5
Piotroski: 6/9Altman Z: 1.84

MESA

Hold

36

out of 100

Grade: F

Growth: 3.3Profit: 2.5Value: 5.0Quality: 4.5
Piotroski: 2/9Altman Z: 0.04

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LUV3 strengths · Avg: 9.3/10
PEG RatioValuation
0.3110/10

Growing faster than its price suggests

EPS GrowthGrowth
50.8%10/10

Earnings expanding 50.8% YoY

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

MESA1 strengths · Avg: 10.0/10
Debt/EquityHealth
-1.9610/10

Conservative balance sheet, low leverage

Areas to Watch

LUV4 concerns · Avg: 3.5/10
P/E RatioValuation
30.3x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

MESA4 concerns · Avg: 2.5/10
Market CapQuality
$58.63M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-378.7%2/10

ROE of -378.7% — below average capital efficiency

Revenue GrowthGrowth
-21.3%2/10

Revenue declined 21.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : LUV

The strongest argument for LUV centers on PEG Ratio, EPS Growth, Price/Book. Revenue growth of 12.8% demonstrates continued momentum. PEG of 0.31 suggests the stock is reasonably priced for its growth.

Bull Case : MESA

The strongest argument for MESA centers on Debt/Equity.

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.

Bear Case : MESA

The primary concerns for MESA are Market Cap, Piotroski F-Score, Return on Equity.

Key Dynamics to Monitor

LUV profiles as a value stock while MESA is a turnaround play — different risk/reward profiles.

MESA carries more volatility with a beta of 2.49 — 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 36/100) and 12.8% revenue growth. 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.

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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Mesa Air Group Inc

INDUSTRIALS · AIRLINES · USA

Mesa Air Group, Inc. is the parent company of Mesa Airlines, Inc. providing regional air transportation services under capacity purchase agreements with American Airlines and United Airlines. The company is headquartered in Phoenix, Arizona.

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