Delta Air Lines, Inc. (DAL) vs Southwest Airlines Co. (LUV)

Delta Air Lines, Inc. and Southwest Airlines Co. are both Airlines companies. Delta Air Lines, Inc. is the larger, with a market value of $56.2B against $21.8B — 2.6× the size. Delta Air Lines, Inc. trades at the lower P/E: 17.0× against 21.1×. Southwest Airlines Co. grew revenue faster over the last twelve months: 14.5% against 14.1%. Delta Air Lines, Inc. has the higher net margin (4.58% vs 3.34%) and the higher return on invested capital (10.5% vs 9.02%). Both pay a dividend; Southwest Airlines Co. yields more (1.62% vs 0.94%). Across the 22 metrics below, Delta Air Lines, Inc. leads on 15 and Southwest Airlines Co. on 7.

Valuation

Metric DAL LUV Airlines median
P/E 17.00 21.05 9.74
P/S 0.78 0.69 0.62
P/B 2.49 2.96 2.03
Price to free cash flow 18.57 122.72 18.01
EV/EBITDA 12.33 8.12 8.55
EV/Sales 0.91 0.76 0.92
Earnings yield 5.88% 4.75% 3.19%
Free cash flow yield 5.39% 0.81% 3.20%

Profitability

Metric DAL LUV Airlines median
Gross margin 31.20% 22.94% 51.70%
Operating margin 7.36% 4.39% 6.13%
Net margin 4.58% 3.34% 1.73%
Free cash flow margin 4.21% 0.56% 3.29%
Return on equity 15.91% 13.96% 14.11%
Return on assets 3.97% 3.58% 1.28%
Return on invested capital 10.46% 9.02% 4.91%

Growth

Metric DAL LUV Airlines median
Revenue growth (TTM) 14.11% 14.50% 12.32%
EPS growth (last fiscal year) 43.71% 3.95% 9.88%
Revenue growth, 5-year CAGR 29.96% 25.41% 25.83%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DAL LUV Airlines median
Debt to equity 0.57 0.80 0.76
Current ratio 0.40 0.47 0.62
Net debt to EBITDA 1.19 0.84 1.42

Dividend

Metric DAL LUV Airlines median
Dividend yield 0.94% 1.62% 1.28%
Payout ratio 0.16 0.35 0.20

Size

Metric DAL LUV Airlines median
Market cap 56.16b 21.76b 2.23b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack