Data as of:
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AAL
American Airlines Group Inc. · Airlines
N/A
N/A this month
VERSUS
COMPARE
LUV
Southwest Airlines Co. · Airlines
N/A
N/A this month
Comparison scoreboard
MIXED SETUP
AI Scorei
AAL N/A
LUV N/A
1Y Returni
AAL N/A
LUV N/A
Fwd P/Ei
AAL N/A
LUV N/A
Target Up.i
AAL N/A
LUV N/A
Op. Margini
AAL N/A
LUV N/A
Quick take

AAL vs LUV Stock Comparison: AI Score, Valuation, Performance and Upside

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American Airlines is typically evaluated as a leveraged, network-scale bet on premium and international travel recovery, while Southwest is judged on how successfully it can modernize its revenue model without eroding the brand loyalty built on simplicity and low fares. The choice between them often comes down to risk appetite for balance-sheet leverage versus turnaround execution risk.

Use this AAL vs LUV comparison to separate balance-sheet risk from operational turnaround risk: American offers network scale and premium revenue exposure against a heavier debt load, while Southwest offers a historically simpler model now undergoing a significant strategic reset.

Want a full valuation workup? 46-section report — AI Score, Monte Carlo forecast, bull/bear case, DCF, and more.
Normalized 1Y performance
AAL
LUV
Not enough data to chart yet.
Recent returns
AAL
LUV
Not enough data to chart yet.
Analyst price targets & sentiment

Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.

AAL
Price target data unavailable
N/A
LUV
Price target data unavailable
N/A
Who should consider this stock?
AAL may suit investors who:
  • Want exposure to premium and international long-haul travel demand
  • Believe loyalty and co-branded card revenue can keep growing steadily
  • Are comfortable with a highly leveraged balance sheet
  • Expect continued domestic industry capacity discipline to support fares
LUV may suit investors who:
  • Believe Southwest's new bag-fee and assigned-seating initiatives will close its revenue gap versus peers
  • Want lower balance-sheet leverage than most network carriers
  • See value in activist-driven cost and capital-allocation discipline
  • Are willing to underwrite execution risk during a multi-year strategy shift
Performance & AI score
Performance & AI score
MetricAALLUV
AI scoreiN/AN/A
AI rankiN/AN/A
Latest closeiN/AN/A
Valuation & upside potential
Valuation & upside potential
MetricAALLUV
Market capiN/AN/A
Trailing P/EiN/AN/A
Forward P/EiN/AN/A
Price/SalesiN/AN/A
EV/RevenueiN/AN/A
Analyst targetiN/AN/A
Target upsideiN/AN/A
Growth, profitability & risk
Growth, profitability & risk
MetricAALLUV
Revenue growthiN/AN/A
Earnings growthiN/AN/A
EPS growthiN/AN/A
FCF marginiN/AN/A
Operating marginiN/AN/A
Profit marginiN/AN/A
ROIC proxyiN/AN/A
Return on equityiN/AN/A
Dividend yieldiN/AN/A
Payout ratioiN/AN/A
Dividend growth streakiN/AN/A
BetaiN/AN/A
Debt/equityiN/AN/A
Current ratioiN/AN/A
Quick ratioiN/AN/A
Drawdown & downside risk

Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.

1Y risk snapshot
AAL max drawdowniN/A
LUV max drawdowniN/A
AAL max wkly dropiN/A
LUV max wkly dropiN/A
5Y risk snapshot
AAL max drawdowniN/A
LUV max drawdowniN/A
AAL max wkly dropiN/A
LUV max wkly dropiN/A
10Y risk snapshot
AAL max drawdowniN/A
LUV max drawdowniN/A
AAL max wkly dropiN/A
LUV max wkly dropiN/A
Performance metrics by period
Performance metrics by period
PeriodMetricAALLUV
1YGrowthiN/AN/A
CAGRiN/AN/A
VolatilityiN/AN/A
Sharpe ratioiN/AN/A
Sortino ratioiN/AN/A
Max drawdowniN/AN/A
Current drawdowniN/AN/A
Avg drawdowniN/AN/A
Ulcer IndexiN/AN/A
Max daily dropiN/AN/A
Max wkly dropiN/AN/A
5YGrowthiN/AN/A
CAGRiN/AN/A
VolatilityiN/AN/A
Sharpe ratioiN/AN/A
Sortino ratioiN/AN/A
Max drawdowniN/AN/A
Current drawdowniN/AN/A
Avg drawdowniN/AN/A
Ulcer IndexiN/AN/A
Max daily dropiN/AN/A
Max wkly dropiN/AN/A
10YGrowthiN/AN/A
CAGRiN/AN/A
VolatilityiN/AN/A
Sharpe ratioiN/AN/A
Sortino ratioiN/AN/A
Max drawdowniN/AN/A
Current drawdowniN/AN/A
Avg drawdowniN/AN/A
Ulcer IndexiN/AN/A
Max daily dropiN/AN/A
Max wkly dropiN/AN/A
AI Prediction Signali
Members only
Next 5 trading days
AAL
+2.8%BUY
LUV
+1.1%HOLD
Next 30 trading days
AAL
+6.4%BUY
LUV
+3.2%HOLD

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Business comparison
Business comparison
CategoryAALLUV
CompanyAmerican Airlines Group Inc.Southwest Airlines Co.
SectorAirlinesAirlines
IndustryN/AN/A
Core businessAmerican Airlines operates the largest hub-and-spoke domestic and international network in the U.S., anchored by major hubs in Dallas-Fort Worth, Charlotte, and Chicago.Southwest Airlines runs a point-to-point domestic network built on a single Boeing 737 fleet type, historically differentiated by no bag fees and open seating.
Investor focusInvestors watch American's heavy debt load from the US Airways merger and pandemic-era borrowing, premium cabin and loyalty program revenue growth, and fuel cost trends.Investors are focused on Southwest's transition away from its legacy open-seating model, new revenue initiatives like bag fees and assigned/extra-legroom seating, and cost discipline under activist investor pressure.
AAL strengths
  • Largest global route network and hub density among U.S. carriers
  • Strong co-branded credit card and loyalty (AAdvantage) revenue stream
  • Premium and international long-haul demand supporting revenue per seat
LUV strengths
  • Simplified single-fleet-type operating model keeps maintenance and training costs lower
  • Historically strong brand loyalty and domestic leisure travel exposure
  • New assigned-seating, extra-legroom, and bag-fee revenue initiatives targeting a long-standing revenue gap versus peers
Risks to watch — AAL
  • Elevated net debt and interest expense relative to peers
  • Sensitivity to fuel prices and macro-driven travel demand swings
  • Ongoing competition from low-cost carriers on domestic routes
Risks to watch — LUV
  • Execution risk in overhauling decades-old customer policies and revenue systems
  • Activist investor involvement (Elliott Management) driving board and strategy changes
  • Domestic leisure concentration leaves it exposed to consumer spending pullbacks
Frequently asked questions
It depends on risk tolerance: American offers network scale and premium travel exposure but carries significantly more debt, while Southwest offers a lighter balance sheet paired with execution risk as it overhauls its revenue model. Neither is a clear all-weather winner, so the decision hinges on which risk an investor is more willing to underwrite.
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Scoreboard verdict

AI score, forward P/E, analyst target upside, operating margin, and revenue growth are scored head-to-head, with a running tally of which ticker leads on how many metrics.

Full risk suite

Volatility, Sharpe and Sortino ratios, maximum, current, and average drawdown, Ulcer Index, and worst single-day and single-week drops across every timeframe.

Correlation heatmap

Pairwise daily-return correlation for every combination, so you can see whether two holdings actually diversify each other or just move together.

Valuation vs profitability

A scatter plot of forward P/E against return on equity, plus drawdown and 30-day rolling volatility charts, to separate what is cheap from what is merely beaten down.

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