Southwest Airlines Company (LUV)vsUnited Airlines Holdings Inc (UAL)
LUV
Southwest Airlines Company
$39.24
+1.42%
INDUSTRIALS · Cap: $18.92B
UAL
United Airlines Holdings Inc
$109.82
+3.13%
INDUSTRIALS · Cap: $35.13B
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 0.19. 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
-55.8%
Fair Value
$68.74
Current Price
$109.82
$41.08 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
16.4% revenue growth
Earnings expanding 20.5% YoY
Attractively priced relative to earnings
Every $100 of equity generates 21 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
Expensive relative to growth rate
Earnings declined 17.2%
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : LUV
The strongest argument for LUV centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 16.4% demonstrates continued momentum. PEG of 0.19 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, PEG Ratio, EPS Growth. Debt-to-equity of 2.02 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.
UAL generates stronger free cash flow (267M), 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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