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EFX vs LUV

EFX
Equifax Inc.
NEUTRAL
Price
$172.47
Market Cap
$20.81B
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
EFX
30.42
LUV
53.14
Forward P/E
EFX
16.79
LUV
8.95
P/B Ratio
EFX
4.53
LUV
2.64
P/S Ratio
EFX
3.31
LUV
0.72
EV/EBITDA
EFX
13.38
LUV
13.29

Profitability

Gross Margin
EFX
56.12%
LUV
22.04%
Operating Margin
EFX
17.45%
LUV
5.09%
Profit Margin
EFX
11.12%
LUV
1.57%
ROE
EFX
14.37%
LUV
4.81%
ROA
EFX
6.27%
LUV
0.95%

Growth

Revenue Growth
EFX
14.3%
LUV
7.4%
Earnings Growth
EFX
34.0%
LUV
50.8%

Financial Health

Debt/Equity
EFX
1.13
LUV
0.75
Current Ratio
EFX
0.61
LUV
0.52
Quick Ratio
EFX
0.51
LUV
0.4

Dividends

Dividend Yield
EFX
1.19%
LUV
1.76%
Payout Ratio
EFX
36.27%
LUV
91.14%

AI Verdict

EFX NEUTRAL

EFX presents a dichotomy between strong operational growth and deteriorating market sentiment. While the Piotroski F-Score of 6/9 indicates stable financial health and the company maintains impressive YoY earnings growth of 34%, the technical trend is severely bearish (0/100) with the stock trading near its 52-week low. The current price of $172.47 is closely aligned with the growth-based intrinsic value ($167.26) but significantly exceeds the defensive Graham Number ($69.68). Liquidity concerns are evident in the low current ratio (0.61), and aggressive insider selling by the CEO and other officers adds to the bearish outlook despite a 'Buy' analyst consensus.

Strengths
Strong YoY earnings growth of 34.00% and revenue growth of 14.30%
Consistent track record of beating earnings estimates over 25 quarters
Healthy gross margins (56.12%) and operating margins (17.45%)
Risks
Severe liquidity risk indicated by a current ratio of 0.61 and quick ratio of 0.51
Strong bearish technical momentum with a 1-year price decline of 32.3%
Bearish insider sentiment with significant selling by the CEO, COO, and CTO
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

EFX vs LUV: Head-to-Head Comparison

This page compares Equifax Inc. (EFX) 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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