Southwest Airlines Company (LUV)vsSun Country Airlines Holdings Inc (SNCY)
LUV
Southwest Airlines Company
$40.19
+0.90%
INDUSTRIALS · Cap: $20.78B
SNCY
Sun Country Airlines Holdings Inc
$17.21
+1.18%
INDUSTRIALS · Cap: $896.28M
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Airlines Company generates 2391% more annual revenue ($28.06B vs $1.13B). SNCY leads profitability with a 4.7% profit margin vs 1.6%. SNCY trades at a lower P/E of 17.5x. LUV earns a higher WallStSmart Score of 63/100 (C+).
LUV
Buy63
out of 100
Grade: C+
SNCY
Hold45
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-39.1%
Fair Value
$36.97
Current Price
$40.19
$3.22 premium
Margin of Safety
-219.1%
Fair Value
$6.53
Current Price
$17.21
$10.68 premium
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
Reasonable price relative to book value
Attractively priced relative to earnings
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
Smaller company, higher risk/reward
4.7% margin — thin
Earnings declined 37.9%
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 : SNCY
The strongest argument for SNCY centers on Price/Book, P/E Ratio.
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.
Bear Case : SNCY
The primary concerns for SNCY are Market Cap, Profit Margin, EPS Growth. Thin 4.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
SNCY carries more volatility with a beta of 1.56 — expect wider price swings.
SNCY is growing revenue faster at 7.9% — sustainability is the question.
SNCY generates stronger free cash flow (35M), providing more financial flexibility.
Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LUV scores higher overall (63/100 vs 45/100). 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.
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 →Sun Country Airlines Holdings Inc
INDUSTRIALS · AIRLINES · USA
Sun Country Airlines Holdings, Inc., an air transportation company, provides scheduled passenger service, air cargo service, charter air transportation, and related services in the United States, Latin America, and internationally. The company is headquartered in Minneapolis, Minnesota.
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