Southwest Airlines Company (LUV)vsNorthrop Grumman Corporation (NOC)
LUV
Southwest Airlines Company
$37.36
-5.49%
INDUSTRIALS · Cap: $18.36B
NOC
Northrop Grumman Corporation
$679.00
-1.88%
INDUSTRIALS · Cap: $96.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Northrop Grumman Corporation generates 49% more annual revenue ($41.95B vs $28.06B). NOC leads profitability with a 10.0% 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+).
LUV
Buy63
out of 100
Grade: C+
NOC
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-39.1%
Fair Value
$36.97
Current Price
$37.36
$0.39 premium
Margin of Safety
+24.9%
Fair Value
$904.35
Current Price
$679.00
$225.35 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Earnings expanding 50.8% YoY
Reasonable price relative to book value
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Generating 3.2B in free cash flow
Areas to Watch
Grey zone — moderate risk
ROE of 4.8% — below average capital efficiency
1.6% margin — thin
Premium valuation, high expectations priced in
Grey zone — moderate risk
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : NOC
The strongest argument for NOC centers on Market Cap, Return on Equity, Free Cash Flow.
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.
Bear Case : NOC
The primary concerns for NOC are Altman Z-Score, Debt/Equity, Piotroski F-Score.
Key Dynamics to Monitor
LUV carries more volatility with a beta of 1.09 — expect wider price swings.
NOC is growing revenue faster at 9.6% — sustainability is the question.
NOC generates stronger free cash flow (3.2B), providing more financial flexibility.
Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LUV scores higher overall (63/100 vs 56/100). NOC offers better value entry with a 24.9% margin of safety. 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.
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.
Visit Website →Northrop Grumman Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Northrop Grumman Corporation (NYSE: NOC) is an American multinational aerospace and defense technology company.
Visit Website →Compare with Other AIRLINES Stocks
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