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BWXT vs LUV

BWXT
BWX Technologies, Inc.
NEUTRAL
Price
$223.15
Market Cap
$20.44B
Sector
Industrials
AI Confidence
85%
LUV
Southwest Airlines Co.
NEUTRAL
Price
$40.92
Market Cap
$20.1B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
BWXT
62.51
LUV
53.14
Forward P/E
BWXT
43.17
LUV
8.95
P/B Ratio
BWXT
16.55
LUV
2.64
P/S Ratio
BWXT
6.39
LUV
0.72
EV/EBITDA
BWXT
49.09
LUV
13.29

Profitability

Gross Margin
BWXT
22.91%
LUV
22.04%
Operating Margin
BWXT
9.26%
LUV
5.09%
Profit Margin
BWXT
10.29%
LUV
1.57%
ROE
BWXT
28.52%
LUV
4.81%
ROA
BWXT
5.95%
LUV
0.95%

Growth

Revenue Growth
BWXT
18.7%
LUV
7.4%
Earnings Growth
BWXT
31.1%
LUV
50.8%

Financial Health

Debt/Equity
BWXT
1.67
LUV
0.75
Current Ratio
BWXT
2.32
LUV
0.52
Quick Ratio
BWXT
2.15
LUV
0.4

Dividends

Dividend Yield
BWXT
0.46%
LUV
1.76%
Payout Ratio
BWXT
27.93%
LUV
91.14%

AI Verdict

BWXT NEUTRAL

BWXT exhibits exceptional operational health with a Piotroski F-Score of 8/9 and strong growth metrics, but it is currently trading at a severe valuation premium. While earnings growth (31.1% YoY) and ROE (28.52%) are impressive, the current price of $223.15 far exceeds both the Graham Number ($32.91) and the growth-based Intrinsic Value ($105.31). The company is fundamentally a 'strong' business trapped in an 'expensive' stock, further complicated by bearish insider selling and a weak technical trend.

Strengths
Strong operational health indicated by a Piotroski F-Score of 8/9
Robust earnings growth (31.1% YoY) and revenue growth (18.7% YoY)
High Return on Equity (ROE) of 28.52%
Risks
Extreme valuation premium (P/E of 62.51 vs. Intrinsic Value of $105.31)
Bearish insider sentiment with significant selling by the CEO
Weak technical trend (10/100) suggesting short-term momentum loss
LUV NEUTRAL

LUV presents a conflicted profile with a stable but mediocre Piotroski F-Score of 4/9 and a significant valuation gap, trading at $40.92 against a Graham Number of $16.38. While the Forward P/E (8.95) and PEG (0.22) suggest strong future earnings potential and a recovery trajectory, current liquidity is concerning with a Current Ratio of 0.52. The dividend is largely unsustainable given a 91.14% payout ratio. Overall, the stock is trading at a significant premium to its intrinsic value of $22.71, though analyst targets remain slightly bullish.

Strengths
Strong earnings growth (YoY +50.80%)
Very attractive PEG ratio (0.22) suggesting growth is undervalued
Significant compression in Forward P/E (8.95) compared to trailing P/E
Risks
Severe liquidity risk with a Current Ratio of 0.52 and Quick Ratio of 0.40
Unsustainable dividend payout ratio (91.14%)
Trading at a massive premium to Graham Number ($16.38) and Intrinsic Value ($22.71)

Compare Another Pair

BWXT vs LUV: Head-to-Head Comparison

This page compares BWX Technologies, Inc. (BWXT) and Southwest Airlines Co. (LUV) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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