Southwest Airlines Company (LUV)vsUnited Airlines Holdings Inc (UAL)
LUV
Southwest Airlines Company
$39.99
-3.20%
INDUSTRIALS · Cap: $19.55B
UAL
United Airlines Holdings Inc
$96.62
-2.97%
INDUSTRIALS · Cap: $32.32B
Smart Verdict
WallStSmart Research — data-driven comparison
United Airlines Holdings Inc generates 109% more annual revenue ($60.47B vs $28.88B). UAL leads profitability with a 6.1% profit margin vs 2.8%. LUV appears more attractively valued with a PEG of 0.24. LUV earns a higher WallStSmart Score of 68/100 (B-).
LUV
Strong Buy68
out of 100
Grade: B-
UAL
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+64.5%
Fair Value
$144.78
Current Price
$39.99
$104.79 discount
Margin of Safety
+14.6%
Fair Value
$133.39
Current Price
$96.62
$36.77 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
Attractively priced relative to earnings
Earnings expanding 84.5% YoY
Every $100 of equity generates 26 in profit
Reasonable price relative to book value
Generating 3.1B in free cash flow
Areas to Watch
Moderate valuation
Grey zone — moderate risk
2.8% margin — thin
Operating margin of 4.5%
6.1% margin — thin
Operating margin of 4.3%
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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 0.24 suggests the stock is reasonably priced for its growth.
Bull Case : UAL
The strongest argument for UAL centers on P/E Ratio, EPS Growth, Return on Equity. Revenue growth of 10.6% demonstrates continued momentum.
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 : UAL
The primary concerns for UAL are Profit Margin, Operating Margin, PEG Ratio. Debt-to-equity of 2.39 is elevated, increasing financial risk.
Key Dynamics to Monitor
UAL carries more volatility with a beta of 1.21 — expect wider price swings.
LUV is growing revenue faster at 12.8% — sustainability is the question.
UAL generates stronger free cash flow (3.1B), providing more financial flexibility.
Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LUV scores higher overall (68/100 vs 67/100) and 12.8% revenue growth. Both earn "Strong Buy" and "Strong 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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