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.
DAL holds the edge across 4 of 5 key metrics in this comparison. DAL has delivered stronger 1-year price return (+37.28% vs +27.78%), though LUV has the better forward P/E setup (8.15x vs 9.21x for DAL). DAL leads on both revenue growth (18.70%) and operating margin (7.92%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies similar upside for both: +29.44% for LUV and +31.37% for DAL.
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.
- 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 scorei | 39.7 | 44.6 |
| AI ranki | #1212 | #809 |
| Latest closei | $40.34 | $79.43 |
| 1M returni | -5.06% | -7.32% |
| 6M returni | -1.30% | +22.18% |
| 1Y returni | +27.78% | +37.28% |
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 | $12.56K (+25.6%) started 2025-09-17 | $13.5K (+35.0%) started 2025-09-17 |
| 5Y ago | $9.12K (-8.8%) started 2021-09-20 | $20.32K (+103.2%) started 2021-09-20 |
| 10Y ago | $13.35K (+33.5%) started 2016-09-19 | $26.21K (+162.1%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | LUV | DAL |
|---|---|---|
| Market capi | $19.39B | $52.66B |
| Trailing P/Ei | 24.77 | 13.28 |
| Forward P/Ei | 8.15 | 9.21 |
| Price/Salesi | N/A | N/A |
| EV/Revenuei | 0.75 | 1.01 |
| Analyst targeti | $51.31 | $105.19 |
| Target upsidei | +29.44% | +31.37% |
| Metric | LUV | DAL |
|---|---|---|
| Revenue growthi | 16.40% | 18.70% |
| Earnings growthi | 20.50% | -25.40% |
| EPS growthi | +20.50% | -25.40% |
| FCF margini | -2.78% | +4.13% |
| Operating margini | 3.38% | 7.92% |
| Profit margini | 2.78% | 5.78% |
| ROIC proxyi | 11.10% | 20.13% |
| Return on equityi | 11.10% | 20.13% |
| Dividend yieldi | 1.82% | 0.97% |
| Payout ratioi | 45.00% | 12.44% |
| Dividend growth streaki | No increase yet | No increase yet |
| Betai | 1.14 | 1.31 |
| Debt/equityi | 97.28 | 96.65 |
| Current ratioi | 0.49 | 0.42 |
| Quick ratioi | 0.38 | 0.27 |
Over the past year, LUV and DAL have moved strongly in the same direction (correlation of 0.73), based on daily returns.
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 | Growthi | +25.59% | +35.04% |
| CAGRi | +25.63% | +35.10% | |
| Volatilityi | 44.14% | 38.97% | |
| Sharpe ratioi | 0.63 | 0.85 | |
| Sortino ratioi | 1.02 | 1.36 | |
| Max drawdowni | 33.78% | 23.11% | |
| Current drawdowni | 26.39% | 15.19% | |
| Avg drawdowni | 13.72% | 6.35% | |
| Ulcer Indexi | 17.59% | 8.35% | |
| Max daily dropi | 7.74% | 6.82% | |
| Max wkly dropi | 15.63% | 13.05% | |
| 5Y | Growthi | -13.91% | +98.90% |
| CAGRi | -2.96% | +14.77% | |
| Volatilityi | 38.58% | 40.81% | |
| Sharpe ratioi | -0.00 | 0.43 | |
| Sortino ratioi | -0.00 | 0.65 | |
| Max drawdowni | 58.75% | 47.92% | |
| Current drawdowni | 26.39% | 15.19% | |
| Avg drawdowni | 33.96% | 15.36% | |
| Ulcer Indexi | 36.17% | 18.61% | |
| Max daily dropi | 14.86% | 12.78% | |
| Max wkly dropi | 22.98% | 24.57% | |
| 10Y | Growthi | +20.87% | +134.76% |
| CAGRi | +1.91% | +8.91% | |
| Volatilityi | 37.68% | 42.03% | |
| Sharpe ratioi | 0.12 | 0.31 | |
| Sortino ratioi | 0.17 | 0.45 | |
| Max drawdowni | 64.76% | 69.18% | |
| Current drawdowni | 33.77% | 15.19% | |
| Avg drawdowni | 30.53% | 22.79% | |
| Ulcer Indexi | 35.34% | 28.54% | |
| Max daily dropi | 15.11% | 25.99% | |
| Max wkly dropi | 23.60% | 44.95% |
| Category | LUV | DAL |
|---|---|---|
| Company | Southwest Airlines Co. | Delta Air Lines, Inc. |
| Sector | Industrials | Industrials |
| Industry | Airlines | Airlines |
| 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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