` LUV (Southwest Airlines Co) vs AAL (American Airlines Group Inc) Comparison - Alpha Spread

LUV
vs
AAL

Over the past 12 months, LUV has outperformed AAL, delivering a return of +37% compared to the AAL's +21% growth.

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LUV
AAL
One-click summary across all key metrics.
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One-click summary across all key metrics.
Ranked results with clear takeaways.
No spreadsheets, no guesswork.
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Valuation
Growth
Profitability
Solvency
Comparing Valuation
Running a multi-layered valuation analysis to compare how attractive each stock is.
Comparing Growth
Financial growth, forecasts, volatility, and historical drawdowns.
Comparing Profitability
Margins, returns on capital, and the consistency of profitability.
Comparing Solvency
Debt levels, liquidity, interest coverage, and bankruptcy risk.
Summarizing...
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Valuation Comparison

LUV Intrinsic Value
45.48 USD
Undervaluation 18%
Intrinsic Value
Price
AAL Intrinsic Value
42.52 USD
Undervaluation 70%
Intrinsic Value
Price
Company Last Price Intrinsic Value DCF Value Relative Value Wall St Target
Southwest Airlines Co
NYSE:LUV
37.35 USD
American Airlines Group Inc
NASDAQ:AAL
12.94 USD
Valuation Scenario:
Bear Case
Base Case
Bull Case

Growth Comparison

Growth Over Time
LUV vs AAL

LUV
AAL
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Revenue
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
Southwest Airlines Co
Revenue
American Airlines Group Inc
Revenue

All metrics are calculated based on data from the last 10 years.

Profitability Comparison

Free Cash Flow
LUV vs AAL

LUV
AAL
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Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
Southwest Airlines Co
NYSE:LUV
American Airlines Group Inc
NASDAQ:AAL
What is Free Cash Flow?

Gross Margin

LUV
72.6%
AAL
64.2%

Operating Margin

LUV
1.8%
AAL
5.5%

Net Margin

LUV
2%
AAL
1.3%

FCF Margin

LUV
-2%
AAL
2.9%

ROE

LUV
5.6%
AAL
-13.7%

ROA

LUV
1.6%
AAL
1.1%

ROIC

LUV
1.6%
AAL
4.3%

ROCE

LUV
2.3%
AAL
7.9%

Solvency Comparison

Balance Sheet Comparison

Stocks Performance

Stocks Performance
LUV vs AAL

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Performance Gap
LUV vs AAL

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LUV
AAL
Difference
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Performance By Year
LUV vs AAL

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LUV
AAL
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