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 $54.8B against $20.5B — 2.7× the size. Delta Air Lines, Inc. trades at the lower P/E: 14.0× against 25.7×. Delta Air Lines, Inc. grew revenue faster over the last twelve months: 10.3% against 9.46%. Delta Air Lines, Inc. has the higher net margin (5.78% vs 2.79%) and the higher return on invested capital (11.1% vs 7.04%). Both pay a dividend; Southwest Airlines Co. yields more (2.28% vs 0.82%). Across the 21 metrics below, Delta Air Lines, Inc. leads on 15 and Southwest Airlines Co. on 6.

Valuation

Metric DAL LUV Airlines median
P/E 13.99 25.71 10.32
P/S 0.81 0.69 0.57
P/B 2.55 2.95 2.06
Price to free cash flow 16.29 n/m 13.20
EV/EBITDA 11.75 8.84 9.68
EV/Sales 0.95 0.77 0.89
Earnings yield 7.15% 3.89% 2.85%
Free cash flow yield 6.14% (0.03%) 3.17%

Profitability

Metric DAL LUV Airlines median
Gross margin 32.82% 23.23% 42.57%
Operating margin 8.08% 3.46% 4.18%
Net margin 5.78% 2.79% 1.85%
Free cash flow margin 4.99% (0.02%) 4.31%
Return on equity 20.12% 11.11% 10.75%
Return on assets 4.80% 2.85% 1.67%
Return on invested capital 11.08% 7.04% 3.19%

Growth

Metric DAL LUV Airlines median
Revenue growth (TTM) 10.27% 9.46% 9.79%
EPS growth (last fiscal year) 43.71% 3.95% —
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 0.64 0.84 0.81
Current ratio 0.42 0.49 0.60
Net debt to EBITDA 1.19 0.84 1.42

Dividend

Metric DAL LUV Airlines median
Dividend yield 0.82% 2.28% 0.82%
Payout ratio 0.02 0.57 0.00

Size

Metric DAL LUV Airlines median
Market cap 54.81b 20.53b 3.91b

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