LUV vs DAL Stock Comparison: AI Score, Valuation, Performance and Upside
LUV represents the traditional low-cost, domestic-focused airline model now undergoing a major strategic overhaul toward assigned seating and premium revenue, while DAL represents the established premium legacy-carrier model with strong loyalty economics. The comparison highlights two very different historical approaches to airline profitability now converging somewhat in strategy.
LUV vs DAL contrasts a low-cost domestic carrier in the midst of a major business-model transformation against an established premium legacy carrier with proven loyalty and margin economics.
LUV holds the edge across 3 of 5 key metrics in this comparison. DAL has delivered stronger 1-year price return (+77.90% vs +52.58%), though LUV trades at the lower forward P/E (10.04x vs 10.31x). On fundamentals, DAL is growing revenue faster (12.90%), while LUV maintains the higher operating margin (4.55%) — a classic growth-versus-profitability split. Analyst consensus implies similar upside for both: +0.38% for LUV and -1.50% for DAL.
- →See turnaround upside in Southwest's shift toward assigned seating and premium revenue
- →Value Southwest's historically lower cost structure
- →Are comfortable with execution risk during a major strategic transition
- →Want exposure to the airline industry's most consistent premium operator
- →Value strong, already-established loyalty and premium revenue economics
- →Prefer a proven business model over a transitioning one
| Metric | LUV | DAL |
|---|---|---|
| AI score | 39.9 | 41.6 |
| AI rank | #1113 | #929 |
| Latest close | $47.97 | $84.18 |
| 1M return | +28.43% | +24.23% |
| 6M return | +17.06% | +20.74% |
| 1Y return | +52.58% | +77.90% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | LUV | DAL |
|---|---|---|
| 1Y ago | $15.39K (+53.9%) started 2025-06-18 | $17.7K (+77.0%) started 2025-06-18 |
| 5Y ago | $9.55K (-4.5%) started 2021-06-21 | $19.18K (+91.8%) started 2021-06-21 |
| 10Y ago | $14.64K (+46.4%) started 2016-06-20 | $27.71K (+177.1%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
| Metric | LUV | DAL |
|---|---|---|
| Market cap | $22.22B | $54.57B |
| Trailing P/E | 30.31 | 12.13 |
| Forward P/E | 10.04 | 10.31 |
| Price/Sales | N/A | N/A |
| EV/Revenue | 0.88 | 1.08 |
| Analyst target | $45.64 | $81.81 |
| Target upside | +0.38% | -1.50% |
| Metric | LUV | DAL |
|---|---|---|
| Revenue growth | 12.80% | 12.90% |
| Earnings growth | 50.80% | 44.60% |
| EPS growth | +50.80% | +44.60% |
| FCF margin | -1.29% | +4.75% |
| Operating margin | 4.55% | 3.18% |
| Profit margin | 2.83% | 6.87% |
| ROIC proxy | 10.06% | 24.99% |
| Return on equity | 10.06% | 24.99% |
| Dividend yield | 1.58% | 0.90% |
| Beta | 1.16 | 1.31 |
| Debt/equity | 93.03 | 105.02 |
| Current ratio | 0.48 | 0.42 |
| Quick ratio | 0.37 | 0.28 |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | LUV | DAL |
|---|---|---|---|
| 1Y | Growth | +53.95% | +77.00% |
| CAGR | +54.04% | +77.14% | |
| Sharpe ratio | 1.08 | 1.48 | |
| Max drawdown | 33.78% | 23.11% | |
| Max daily drop | 11.16% | 6.82% | |
| Max wkly drop | 17.98% | 13.05% | |
| 5Y | Growth | -9.85% | +87.82% |
| CAGR | -2.06% | +13.46% | |
| Sharpe ratio | 0.02 | 0.40 | |
| Max drawdown | 59.66% | 47.92% | |
| Max daily drop | 14.86% | 12.78% | |
| Max wkly drop | 22.98% | 24.57% | |
| 10Y | Growth | +32.16% | +146.75% |
| CAGR | +2.83% | +9.46% | |
| Sharpe ratio | 0.14 | 0.32 | |
| Max drawdown | 64.76% | 69.18% | |
| Max daily drop | 15.11% | 25.99% | |
| Max wkly drop | 23.60% | 44.95% |
| Category | LUV | DAL |
|---|---|---|
| Company | Southwest Airlines Co. | Delta Air Lines, Inc. |
| Sector | Industrials | Industrials |
| Industry | N/A | N/A |
| Core business | Southwest Airlines is the largest U.S. domestic carrier by passengers, operating a low-cost, point-to-point route network with a single aircraft type and historically a no-change-fee, two-free-bags customer model now under strategic revision. | Delta Air Lines is one of the largest U.S. legacy carriers, operating an extensive domestic and international network with a strong hub system and a high-margin premium and loyalty revenue strategy. |
| Investor focus | Investors track Southwest's transition away from open seating and toward assigned seats and premium options, cost discipline, and activist investor pressure on its strategy. | Investors track Delta's premium cabin and loyalty (SkyMiles/Amex co-brand) revenue growth, operational reliability metrics, and margin leadership relative to peers. |
- →Lowest historical cost structure among major U.S. carriers
- →Strong brand loyalty built around customer-friendly policies
- →Simple, efficient single-aircraft-type fleet operations
- →Industry-leading operational reliability and on-time performance
- →Strong premium and loyalty revenue mix supports higher margins
- →Lucrative American Express co-brand credit card partnership
- →Undergoing a major strategic shift toward assigned seating and premium revenue under activist pressure
- →Has historically lagged peers in premium and loyalty revenue generation
- →Execution risk in transitioning its business model without alienating its core customer base
- →Highly cyclical industry sensitive to fuel costs and economic downturns
- →Labor cost inflation following recent pilot and crew contract negotiations
- →Heavy capital intensity of fleet maintenance and renewal
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