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CRS vs LUV

CRS
Carpenter Technology Corporation
NEUTRAL
Price
$427.48
Market Cap
$21.3B
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
CRS
49.76
LUV
53.14
Forward P/E
CRS
35.04
LUV
8.95
P/B Ratio
CRS
10.72
LUV
2.64
P/S Ratio
CRS
7.23
LUV
0.72
EV/EBITDA
CRS
30.49
LUV
13.29

Profitability

Gross Margin
CRS
28.85%
LUV
22.04%
Operating Margin
CRS
21.13%
LUV
5.09%
Profit Margin
CRS
14.77%
LUV
1.57%
ROE
CRS
23.49%
LUV
4.81%
ROA
CRS
10.75%
LUV
0.95%

Growth

Revenue Growth
CRS
7.5%
LUV
7.4%
Earnings Growth
CRS
25.9%
LUV
50.8%

Financial Health

Debt/Equity
CRS
0.35
LUV
0.75
Current Ratio
CRS
4.25
LUV
0.52
Quick Ratio
CRS
2.02
LUV
0.4

Dividends

Dividend Yield
CRS
0.19%
LUV
1.76%
Payout Ratio
CRS
9.29%
LUV
91.14%

AI Verdict

CRS NEUTRAL

Carpenter Technology exhibits exceptional fundamental health with a Piotroski F-Score of 8/9 and a very conservative debt profile (D/E 0.35). However, the stock is severely overvalued from a deterministic standpoint, trading at $427.48—well above both its Graham Number ($87.77) and its growth-based Intrinsic Value ($253.41). While earnings growth is robust and analysts remain bullish, the combination of a bearish technical trend (10/100) and significant insider selling ($33.32M) suggests the current price has decoupled from fundamental value.

Strengths
Strong financial health indicated by Piotroski F-Score of 8/9
Excellent liquidity with a Current Ratio of 4.25
High profitability with ROE of 23.49% and Operating Margin of 21.13%
Risks
Extreme valuation premium (P/B of 10.72 and P/E of 49.76)
Significant insider selling by the President and Directors
Strongly bearish technical trend (10/100)
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

CRS vs LUV: Head-to-Head Comparison

This page compares Carpenter Technology Corporation (CRS) 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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