Southwest Airlines Company (LUV)vsUnited Airlines Holdings Inc (UAL)
LUV
Southwest Airlines Company
$43.47
+0.07%
INDUSTRIALS · Cap: $19.32B
UAL
United Airlines Holdings Inc
$103.43
-1.22%
INDUSTRIALS · Cap: $36.52B
Smart Verdict
WallStSmart Research — data-driven comparison
United Airlines Holdings Inc generates 109% more annual revenue ($62.90B vs $30.07B). UAL leads profitability with a 5.6% profit margin vs 2.8%. LUV appears more attractively valued with a PEG of 0.20. LUV earns a higher WallStSmart Score of 66/100 (B-).
LUV
Strong Buy66
out of 100
Grade: B-
UAL
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for LUV.
Margin of Safety
-41.9%
Fair Value
$69.01
Current Price
$103.43
$34.42 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
16.4% revenue growth
Earnings expanding 20.5% YoY
Attractively priced relative to earnings
Every $100 of equity generates 20 in profit
Reasonable price relative to book value
16.0% revenue growth
Areas to Watch
Grey zone — moderate risk
2.8% margin — thin
Operating margin of 3.4%
Negative free cash flow — burning cash
5.6% margin — thin
Elevated debt levels
Expensive relative to growth rate
Earnings declined 17.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : LUV
The strongest argument for LUV centers on PEG Ratio, Revenue Growth, EPS Growth. Revenue growth of 16.4% demonstrates continued momentum. PEG of 0.20 suggests the stock is reasonably priced for its growth.
Bull Case : UAL
The strongest argument for UAL centers on P/E Ratio, Return on Equity, Price/Book. Revenue growth of 16.0% demonstrates continued momentum.
Bear Case : LUV
The primary concerns for LUV are Altman Z-Score, Profit Margin, Operating Margin. Thin 2.8% margins leave little buffer for downturns.
Bear Case : UAL
The primary concerns for UAL are Profit Margin, Debt/Equity, PEG Ratio. Debt-to-equity of 1.93 is elevated, increasing financial risk.
Key Dynamics to Monitor
UAL carries more volatility with a beta of 1.27 — expect wider price swings.
LUV is growing revenue faster at 16.4% — sustainability is the question.
LUV generates stronger free cash flow (-495M), providing more financial flexibility.
Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LUV scores higher overall (66/100 vs 57/100) and 16.4% revenue growth. Both earn "Strong 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 →United Airlines Holdings Inc
INDUSTRIALS · AIRLINES · USA
United Airlines Holdings, Inc. (formerly known as United Continental Holdings, Inc., UAL Corporation, Allegis Corporation and founded originally as UAL, Inc.) is a publicly traded airline holding company headquartered in the Willis Tower in Chicago. UAH owns and operates United Airlines, Inc.
Visit Website →Compare with Other AIRLINES Stocks
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